Aclipse Therapeutics is making a sharp move. The company has secured an option to buy Cypress BioPharma. If the deal closes, Aclipse will split its lead drug, M107, into two separate Phase 2 programs. One will focus on kidney disease. The other will target gastrointestinal disorders. The main goal: push M107 into childhood nephrotic syndrome, a field where kids still depend on steroids and immunosuppressants.
The acquisition is not final yet. It still needs to clear closing conditions. If it goes through, Aclipse will gain Cypress’s kidney drug know-how and two early-stage renal candidates. The bigger play is clear. Aclipse wants to run M107 as two tracks: M107R for kidney disease, M107G for GI disorders. The company is getting ready for a Phase 2 trial in children with nephrotic syndrome. This group has few options beyond heavy-duty drugs.
Aclipse Therapeutics has not yet received independent primary-source confirmation of a finalized acquisition agreement or regulatory filing for the Cypress BioPharma deal.
Parallel development for M107 in kidney and GI diseases
The LOKID study is next up. Aclipse wants to see if M107 can help kids with steroid-dependent or frequently relapsing nephrotic syndrome stay in remission. The company is pitching M107 as a non-immunosuppressive option. The hope is to cut down on chronic steroid use. M107, also called lobeglitazone, works as a PPARγ activator. Cypress’s approach is built on research showing PPARγ agonists protect podocytes—the kidney’s filter cells—from damage. Cypress CEO Michelle Higgin put it simply: “PPARγ agonist-induced podocyte protection and proteinuria reduction may be achieved without added steroids or other immunosuppressive drugs.”
The GI side is moving too. The Mayo Clinic is backing the LOGAST trial in idiopathic gastroparesis. That study is almost ready to start. Both Phase 2 trials will test M107 in two very different diseases. It’s rare to see a single drug pushed this way at this stage. Few companies try it.
Financing and pipeline implications
Aclipse needs cash to pull this off. The company is opening a Series B preferred-equity round. CEO Raymond K. Houck and his team are betting big. If the Cypress deal closes, Aclipse will add more kidney drug candidates and bring in experienced renal developers. The plan is to make M107 a disease-modifying therapy. The science focuses on macrophage rebalancing and cell protection. The company already has a clinical safety database to build on.
The accessible sources do not provide the size, pricing, or closing date of Aclipse's Series B preferred-equity financing, and no reliable independent confirmation of trial registration specifics for the named programs was available in recent search results.
Aclipse is taking a risk. The company is moving to buy Cypress and run two Phase 2 programs at once. Most biotechs stick to one asset. Aclipse is going wide. If the trials work, the payoff could be big. The company is betting that breadth, not just focus, will set it apart in kidney and GI disease. The next few months will tell.
