Merz Therapeutics is a pharmaceutical company specializing in the development and commercialization of treatments in the areas of specialty neurology and movement disorders.
Stefan, could you tell us briefly about your interesting background and what brought you to Merz Therapeutics two years ago?
My career has revolved around balancing experiences at both larger companies like Merck and Novartis and smaller ones, with a particular interest in bringing growth to more agile organizations. Merz Therapeutics represents a unique opportunity - a company with robust pharmaceutical operations but one that is still small enough to allow for meaningful structural and operational development.
When I joined Merz Therapeutics, I saw it as a gem in the rough, with a fully developed pharmaceutical operation across clinical R&D, marketing, and with biologic production, but needing structure and vision for growth to truly flourish. The family-owned company is committed to expanding its reach and bringing its existing and future therapies to a global audience, which resonated deeply with me.
What is behind Merz Therapeutics’ decision to focus on specialty neurology?
As a smaller organization, Merz Therapeutics cannot afford to spread its resources too thin across multiple therapeutic areas. Neurology, particularly in the specialty care space, presents significant growth opportunities due to the high unmet patient need, and we feel that the market is poised for accelerated growth. We believe that focusing on this area will provide the foundation for the company’s future success, using the expertise we already have to rebuild and expand the company.
Do you believe the field of neurology is about to experience significant breakthroughs?
The unmet need in neurology is unparalleled, and while recent advancements, such as breakthroughs in Alzheimer's disease and multiple sclerosis, are encouraging, I believe the most significant breakthroughs are still ahead of us. The complexity of the central nervous system, particularly the brain, has made it difficult to develop effective treatments, but the potential for innovation remains high. Merz Therapeutics is particularly well-positioned to capitalize on this with our traditional strengths in neuroscience and existing research capabilities. We are committed to making an impact in neurology by addressing some of the most pressing patient needs, particularly in areas like Parkinson’s disease and multiple sclerosis.
Why did Merz Therapeutics decide to acquire a multiple sclerosis treatment and a Parkinson’s disease inhalation drug from Acorda Therapeutics?
The acquisition of those two therapies from Acorda Therapeutics is part of Merz Therapeutics’ broader growth strategy, which focuses on expanding our presence in specialty neurology. We realized that to reach a significant number of markets and patients, we needed to scale up, both organically and through acquisitions. The acquisition was an opportunity to integrate valuable treatments for symptoms associated with Parkinson’s disease and multiple sclerosis into our existing portfolio and ensure their continued availability for patients globally.
This acquisition supports our vision of becoming a leading player in specialty neurology. We are focused on ensuring that both therapies reach a larger patient population, particularly in regions where they are not yet available. Additionally, we are exploring other acquisition opportunities that align with our strategy in specialty and rare neurology, further strengthening our position in these therapeutic areas.
Can you talk more about the exciting developments in Merz Therapeutics’ pipeline, centered around your neurotoxin injectable?
Our neurotoxin injectable is a cornerstone of our growth strategy, with a wide array of indications already licensed for the product. It has proven effective in treating conditions like cervical dystonia, spasticity, and other neuromuscular disorders. We are also exploring new applications, particularly in areas with significant unmet patient needs. We are particularly excited about expanding its potential through clinical research in the treatment of migraines, with a large Phase 3 study set to begin soon. These studies will be the largest clinical trials Merz Therapeutics has ever undertaken, aiming to address both prevention of episodic and chronic migraine.
Additionally, we are investigating the drug’s potential in treating chronic neuropathic pain, such as pain caused by shingles infections and post-traumatic neuropathy. Our Phase 2 proof-of-concept study is ongoing, and if successful, we will proceed to Phase 3 trials. The product has shown promise in treating these types of pain, and we believe it could offer an effective approach with a favorable safety profile in the treatment landscape. Our goal is to continue expanding indications, both in terms of therapeutic areas and geographical reach.
How do you ensure that Merz Therapeutics does not overextend its resources as it expands into new areas?
As Merz Therapeutics grows, we are mindful of the risks associated with scaling too quickly. To mitigate these, we have designed a strategic framework that balances organic and inorganic growth, ensuring we can manage our resources effectively. We are focusing on clinical development efforts that align with our existing capabilities, streamlining internal resources to support these initiatives. Additionally, we have made sure that our five-year strategic plan includes sufficient funding to support these expensive clinical studies, allowing us to finance these projects through our solid income without the immediate need for external funding at this point.
We have also taken steps to ensure our organization is scalable by implementing a cross-functional, product-centric organizational model. This model enables us to integrate new assets and therapies efficiently, as we have demonstrated through the successful integration of the Acorda asset acquisition. Moreover, we have expanded our global workforce by over 25% in the past year, with notable growth in our U.S. operations. This ensures that we have the right talent in place to manage our expanding portfolio and global operations while staying focused on our core mission of becoming a leader in specialty neurology.
What are the most promising aspects of neurological research in the short term?
The area of chronic neuropathic pain stands out as one of the most promising areas for breakthroughs in neurology. Currently, there are few therapies that effectively target the root causes of neuropathic pain, and most available treatments have significant side effects. We believe that if our Phase 2 study is successful, we could develop a novel approach to the treatment of neuropathic pain with a favorable safety profile and clinically meaningful efficacy.
Another program that stands out is our work in Parkinson’s disease. We know that on-demand treatment has already shown promise in the U.S., Germany, and Spain, helping PD patients manage their "off" periods and regain control over their lives. We are passionate about expanding its reach and bringing this vital treatment to more patients globally.
Both of these programs—neuropathic pain and Parkinson’s disease—represent important opportunities to make a real difference in the lives of patients, and we are committed to seeing them through to success.
