Austrian biotech Cyprumed has announced that MSD, the tradename of Merck and Co, has started a Phase 1 clinical trial of a drug candidate using its oral peptide delivery technology.

The company said it is the first Cyprumed-formulated programme to enter human testing. The trial will evaluate a proprietary MSD peptide delivered as a tablet, a format that could free patients from injections.

The milestone triggers a payment to Cyprumed under the companies’ 2025 licensing agreement. In total, the deal can be worth up to $493 million in upfront, development, regulatory and sales milestones.

Cyprumed’s technology aims to solve two hard problems: getting peptides absorbed through the gut and reducing the effect of food on absorption. That could mean more consistent dosing for chronic-disease patients.

The announcement came via company press release. Phase 1 trials test safety in small groups, and most candidates never reach the market. Analysts note oral peptide delivery has become one of the hottest deal areas in pharma partnering.