Boehringer Ingelheim acquires Pharmaxis’ investigational drug PXS4728A

Boehringer Ingelheim has acquired Pharmaxis’ investigational drug PXS4728A, to develop it for the treatment of the liver-related condition NASH and to prevent its consequences.

PXS4728A is a Semicarbazide-Sensitive Amine Oxidase/Vascular Adhesion Protein-1 (SSAO/VAP-1) Inhibitor discovered by Pharmaxis that works by blocking leucocyte adhesion and tissue infiltration in inflammatory processes. Pharmaxis has developed it through to Phase 1 clinical studies, demonstrating oral bioavailability, long-lasting target inhibition and good tolerability and safety.

NASH is the progressive form of non-alcoholic fatty liver disease (NAFLD), the most common liver disorder in Western industrialised nations. It is regarded as a major cause of fibrosis and cirrhosis of the liver and is an area of high unmet clinical need. The high prevalence of Type 2 diabetes and obesity, which can lead to NASH and its long term consequences, is considered to make NASH one of the most common causes of advanced liver disorders in coming decades.

PXS4728A deal has a total potential value in excess of AUD $750m

Pharmaxis CEO Mr Gary Phillips said, “This is a transformational event for Pharmaxis. With a total potential value in excess of AUD $750 million, it is a globally competitive deal and significant for the Australian biotech sector. We are delighted that Boehringer Ingelheim has acquired PXS4728A. Boehringer Ingelheim’s clinical expertise will now be applied to the development of this drug which has the potential to make a real difference in the treatment of diseases with high unmet clinical need.”

Glyn Parkin, Corporate SVP and Metabolism Head at Boehringer Ingelheim, commented, “We have ambitious strategic goals in diabetes and metabolism and this Phase 1 asset acquisition fits well into our development portfolio. We are pleased to have achieved access to Pharmaxis’ research excellence and innovative approach to treatments for NASH. We will continue to build our portfolio through both internal and external innovation so that we are able to bring much needed medications to the patients we serve.”

Pharmaxis will receive an upfront payment of €27.5 million (approximately AUD $39m) and, subject to the continuing successful development and commercialisation of the PXS4728A program, the other payments including:

• up to a total of €55 million in development milestone payments tied to the commencement of phase 2 and 3 clinical trials
• up to a total of €140 million in regulatory milestone payments upon filing of applications for marketing approval and receipt of regulatory and pricing approvals for a PXS4728A program product in the major pharmaceutical markets for the first indication
• commercialisation milestone payments upon achievement of specified levels of annual net sales of PXS4728A program products

Boehringer will be responsible for all development, regulatory, manufacturing and commercialisation activities. Under the agreement, Boehringer has also acquired other SSAO/VAP-1 inhibitor molecules related to PXS4728A and associated patents.