R&D news

Olympic Therapeutics AG/ Phage Therapeutics GmbH see realistic, great chances of a successful exit through financing of clinical phases I – II (III) by one (or more) private investors as an enormous positive, as the highest financial risk (Pharma – Exit – Statistics show high drop-out rates before Phase III) is covered. Nevertheless, the clinical success of bacteriophages continues to be the main driver of exit potential.

Assessment of exit opportunities

The chances of success for an exit ( by sale to Big Pharma or licensing ) after successful phase II ( or III ) can be classified as follows:

  • Funding security (big or multiple middle big investors)
  • Market pressure and efficacy ( Global increase of MRSA ) Pharmaceutical companies are urgently looking for alternatives to antibiotics
  • Clinical risk ( FDA, EMA )
  • Pharma – Interest ! Successful completion of Phase II ( or III ) studies makes the portfolio a sought-after takeover target ( small cap M&A, often already after phase II) for large pharmaceutical companies, as commercialization is already prepared.

Olympic Therapeutics/Phage Therapeutics will first discuss whether a " Phage Genome Application Technology " as a modern application technology of a synthetic phage (tailor-made phages are "programmed" in the laboratory for spectrum expansion, elimination of resistance, increase of stability, avoidance of toxins, payload delivery).

Since the intellectual property ( IP ) of modified genomes is much more attractive and easier to protect than of natural Eliava bio phages ( natural , unmodified isolates ) phages ( since pure natural products are not patentable as a substance according to international patent law ) Olympic Therapeutics AG ( or its Phage Therapeutics GmbH ) solves the problem with a multi-layered AI-supported business model.

Instead of the organism itself, the technological and process ecosystem around it is protected. The company combines the historical heritage of the Eliava Institute with modern Western IP ( Intellectual Property ) strategy through 5 supporting pillars

  • AI – Supported Formulation and Combination Technology

  • Purpose-Specific Substance Protection (Indication Patents)

  • Proprietary manufacturing and purification processes ( GMP and process patents )

  • The data monopoly ( regulatory exclusivity ) of primary clinical data

  • Exclusive access to the spring ( Eliava Library ) Olympic has access to the world's largest phage library in Georgia, which has grown for over 100 years

Conclusion for the exit scenario – Olympic Therapeutics cleverly circumvents the ban on "nature patents" by protecting combinations, AI formulations, indications and GMP processes, means for a potential buyer (Big Pharma or private investor) an IP package together with the exclusive Eliava access a watertight trademark protection (economic moat), which enormously secures the economic value at the exit.

Olympic Therapeutics AG's licensing model transforms the scientific potential of Eliava phages into a highly calibrated, low-risk business with reccuring revenues.

For the private investor, this is the decisive lever, as pharmaceutical buyers can prove in the event of an exit ( M&A ) that they can

value recurring cash flows extremely highly.

The model is based on a classic B2B platform strategy ( "Phage-as-a-Service" ) divided into 4 revenue streams:

1. The " Out – Licensing " strategy to Big Pharma ( indication licenses )
Olympic Therapeutics will not market the phage cocktails worldwide after the clinical phases ( e.g. II or III ). Instead, exclusive licenses per indication and geographical region are granted to large pharmaceutical companies.

  • Upfront Payments: One-off, often three-digit million payments when signing a contract
  • Milestone Payments: Successive payments when further regulatory and commercial milestones are achieved
  • Recurring royalties

2. The "Nespresso model" for personalized medicine
Since bacteria ( such as MRSA ) mutate, phage cocktails must be continuously adapted. This is where the so-called Razor – and – Blade principle comes into play.

  • The hardware/platform AI-powered diagnostic system exclusively through Olympic Therapeutics'
  • The software / consumables ( Recurring ) generates continuous, monthly subscription or order fees.

3. Exclusive delivery and manufacturing fees (SaaS & Supply)
Even if a pharmaceutical giant buys the worldwide distribution rights, Olympic Therapeutics AG ( through its GMP certified manufacturing partners ) remains the exclusive master supplier of the phage concentrate.

  • The licensee is contractually obliged to obtain the biological input material exclusively from Olympic Therapeutics.
  • This ensures the company long-term, predictable, recurring revenues from physical production that are completely independent of pure patents.

4. Technology licenses for the AI platform

The proprietary AI platform, which is used to identify, sequence and combine phages, can be distributed to other Biotech companies or research institutes.

  • This is done via classic SaaS models ( software-as-a-service ) with annual usage fees, which further maximizes the company's gross margins and reduces the dependence on pure drug success.

Conclusion for the exit of the private investor

  • This licensing model drastically reduces the economic risk for the investor. The company does not have to build up an expensive, worldwide sales network. At the time of the exit, an investor or a pharmaceutical company does not buy a risky research object, but a fully functional license and revenue machine whose biological basis (the Eliava strains) and technological basis (AI) mesh perfectly.

The potential buyers for a billion-dollar exit of Olympic Therapeutics AG ( after successful phases II or III ) are primarily global pharmaceutical companies that are under enormous pressure to innovate in the infection sector and are desperately looking for solutions to the impending " patent cliff " ( slump in sales due to expiring patents ).

 

Due to the exclusive Eliava cooperation and the AI platform, the circle of logical M&A buyers ( Mergers & Acquisitions ) can be divided into three strategic groups:

1. The " Classical Infectiology – Giants " ( The Most Logical Buyers )
These companies already have the global distribution infrastructure for clinics ( where MRSA cases occur ) and are manually looking for innovative alternatives to failing broad-spectrum antibiotics.

° Pfizer: Despite post-Corona consolidation, it remains one of the world's largest players in the anti-infectives market.
Pfizer is losing massive sales due to patent expirations and traditionally buys heavily in the biotech sector. A "turnkey phage system" against hospital germs fits perfectly into the portfolio.

 

° GlaxoSmithKline (GSK): The British company has an extremely strong focus on infectious diseases and vaccines. GSK has allocated billions to immunology and infectiology biotechnology at the beginning of 2026 alone and is considered very open in the industry to biological ( non-synthetic , see biological Eliava bacteriophages ) therapeutic approaches

 

° Merck & Co. (MSD): Merck is a leader in serious clinical infections ( including strong reserve antibiotics ) . Since bacterial resistance threatens their existing blockbuster drugs, interest in a "resistance-free" technology such as Eliava natural phages ( see . Olympic Therapeutics AG – supply contract with Eliava since 2020 ) to secure market leadership.

2. The "Technology Platform – Buyers"

These companies don't buy biotechnology just because of a single drug,

but because of the underlying technological platform (such as the AI combination technology discussed by Olympic Therapeutics):

° Roche: The Swiss neighbor (based in Basel) is the king of personalized medicine and diagnostics. The "Nespresso model" from Olympic – Therapeutics ( clinic tests bacterium > orders exactly matching phage cocktail ) is 100% in line with Roche's long-term corporate strategy. In addition, Roche has the necessary financial strength for Swiss mega deals.

° Eli Lilly: Currently the most valuable pharmaceutical company in the world, having already made several billion acquisitions in the biotechnology sector at the beginning of 2026. Lilly is constantly looking for platforms validated by AI to occupy new markets outside of obesity and diabetes.

3. Aggressive " Niche – Hunters " ( Mid – Cap – Pharma ) 

° Ipsen: The French pharmaceutical company is in the middle of a massive buying spree and announced in mid-2026 that it would set aside over 2.5 billion dollars for targeted biotechnology acquisitions to fill niche indications and serious infections ( e.g. in organ transplants ).

° Gilaed Sciences: Known for the extremely successful marketing of niches – antiviral and antibacterial therapies. They have the necessary aggressiveness to completely integrate a highly innovative project such as Phage Therpeutics GmbH ( see olympic Therapeutics AG ).

How does such an exit work for the investor in concrete terms?

  • As a rule, a private investor does not have to wait until the final market approval to cash in on Olympic Therapeutics AG. Typically, the exit takes place as a " trade sale " ( complete sale ) directly after the submission of the Clinical Phase II data ( Proof of Concept ). At this point it is clear that the Eliava phages work in Western patients. The buyer ( e.g. Pfizer or GSK ) then takes over the extremely expensive phase III study ( for Olympic Therapeutics AG already a 3rd financing round of approx.  EUR 25 million ) and is rolling out the project globally.


    Important! Since phages from the Eliava Institute have an extremely high biological safety as natural phages.

    Phase I studies are often leaner than with toxic synthetic agents. The phage material itself historically accounts for the smallest part of the costs in clinical research ( in contrast to synthetic chemicals ) thanks to the exclusive contracts between Olympic Therapeutics AG and the Eliava Institute. The lion's share is accounted for by clinical implementation in hospitals ( CRO monitoring, GMP release ).

1. Clinical Phase I ( Focus : Safety & Tolerability )

  • Subjects: 20 – 40 subjects ( split between MRSA skin wound infection and VAP – safety cohorts )
  • Cost of Eliava phage material: approx. 50,000 – 100,000 EUR (replication and provision of the master strains from Tbilisi is relatively inexpensive).
  • Total costs Phase I : Approx. 1.5 million EUR to 3.0 million EUR ( includes regulatory submission, GMP certification of the first batches and the clinical monitoring of the subjects).

2. Clinical Phase II ( Focus on Efficacy & Dosage / Proof of Concept )
Here, the therapeutic effect is tested for the first time directly on acutely ill patients in the hospital ( intensive care unit for VAP , isolation ward for MRSA ). This is the most important phase for the investor, as success here initiates the exit.

  • Required subjects 150 – 250 patients ( multicenter, i.e. divided between several European clinics ).
  • Cost of Eliava phage material: Approx. 200,000 – 400,000 EUR (due to the higher volumes required and the personalized customization of the cocktails).
  • Total costs Phase II: Approx. EUR 6.0 million – EUR 12.0 million (high costs due to the management of seriously ill VAP patients in the intensive care unit and the intensive bacterial monitoring of MRSA strains).


3. Clinical phase III ( Focus : Statistical evidence for approval )
The final large-scale study before market approval. It serves to statistically prove that the phage cocktail is superior to standard therapy ( reserves of antibiotics ) or at least equivalent ( non-inferiority ).

  • Required subjects 600 – 1,200 patients ( international placebo-controlled double-blind study ) .

  • Cost of Eliava phage material: approx. EUR 1.0 million – EUR 2.0 million ( Large-scale production under strict GMP supervision ) .

  • Total costs Phase III: approx. EUR 25.0 – EUR 40.0 million (This phase corresponds exactly to the advanced financing round of approx. EUR 25.0 million announced by Olympic Therpeutics AG, which is often already borne by the exit partner).

Why is the total cost of ownership so low compared to BIG Pharma?

Classic pharmaceutical developments in phase III often cost over EUR 100.0 million. However, with Olympic Therapeutics' Eliava phages, there is no risk of "guessing" at dosage and the drop-out rate due to sudden toxic side effects is close to zero. In addition, the targeting of orphan diseases or severe hospital germs (MRSA/VAP) often allows accelerated approval procedures (fast track) with smaller patient groups.