Pharmaxis sells NASH candidate to Boehringer, transforming financial outlook

Boehringer Ingelheim has exercised an option to buy PXS4728A from Australia-based Pharmaxis and develop it for the treatment of the liver-related condition NASH with the candidate also showing potential in chronic obstructive pulmonary disease (COPD).

The deal was called "transformational" for Pharmaxis, which has struggled since 2013 after the U.S. FDA red-flagged its application to market Bronchitol to cystic fibrosis patients.

Pharmaxis will receive an upfront payment of €27.5 million and up to €55 million in milestone payments tied to Phase II and Phase III clinical trials. Another €140 million in milestone payments is possible if the drug receives regulatory approvals among other milestones.

Pharmaxis CEO Gary Phillips

"This is a transformational event for Pharmaxis," said Pharmaxis CEO Gary Phillips in the May 18 press release. "With a total potential value in excess of $A750 million, it is a globally competitive deal and significant for the Australian biotech sector."

- here's the release