Merck Serono forms gastrointestinal disease-focused spin-off

Merck Serono has launched a new spin-off through its Entrepreneur Partnership Programme (EPP) that will focus on new developments in the treatment of gastrointestinal immunological disorders.

Calypso Biotech has been formed around Merck Serono's research and development portfolio in the field of inflammatory bowel disease, targeting niche indications with high unmet medical needs.

Veteran Merck Serono immunologists Yolande Chvatchko and Alain Vicari will be among the initial employees of the new company, which is to receive 2.5 million euros (2.15 million pounds) in seed funding from the main business.

Dr Bernhard Kirschbaum, executive vice-president and head of global research and early development at Merck Serono, said: "Calypso Biotech has the portfolio, the expertise and the scientific network to build a unique translational medicine approach and to become a partner of choice in this therapeutic area."

This is the sixth new business to be created under the EPP scheme, with the fourth and fifth – the IT service providers TQM Insight and Ondaco – having been launched in January 2013.

To date, the programme has allowed 41 former staff members to find new employment.