Oxitope Pharma (Oxitope) and Arxx Therapeutics (Arxx) have merged to form Calluna Pharma Inc. (Calluna), a biotechnology company developing treatments for inflammatory and fibrotic diseases. Announced on 23 January 2024, the merger was accompanied by a €75 million Series A financing round led by Forbion, with participation from the existing investors Sarsia, p53 and Investinor.

The new company combines the two organisations’ expertise in innate immunity and damage-associated molecular patterns (DAMPs). Its approach focuses on targeting upstream immune mechanisms involved in inflammation and tissue fibrosis, with the aim of developing antibody therapies for diseases with significant unmet medical needs.

Antibody pipeline targeting inflammatory and fibrotic diseases

Calluna reported four antibody candidates in its development pipeline. Its lead clinical-stage programme, CAL101, is a monoclonal antibody designed to neutralise S100A4, a DAMP protein associated with conditions including idiopathic pulmonary fibrosis, chronic kidney disease, systemic sclerosis, rheumatoid arthritis and severe asthma.

Another candidate, CAL102, targets oxidised phospholipids, which are involved in inflammatory and fibrotic processes. The company reported efficacy in several preclinical disease models. These findings represent early research evidence and do not establish clinical efficacy in patients.

The €75 million financing is intended to advance the pipeline towards further clinical development and proof-of-concept milestones.

Investor support and development strategy

Forbion led the Series A round, with participation from Sarsia, p53 and Investinor. The investors are supporting the combination of the two companies’ research programmes and the development of their antibody candidates.

John Montana, Chief Executive Officer of Calluna Pharma, described the merger as an opportunity to combine complementary expertise and advance four therapeutic candidates. Forbion and Sarsia also highlighted the potential of the combined pipeline to address inflammatory and fibrotic diseases.

Outlook

The formation of Calluna Pharma brings together two biotechnology companies with a shared focus on innate immunity. Its €75 million Series A financing provides resources to advance its antibody pipeline, although the therapeutic potential of the candidates will need to be established through further clinical research.