Sign up Australia
Proactive Investors - Run By Investors For Investors

Synairgen 's new fibrosis collaboration terms will free it to work in other areas

The new terms give it the opportunity to benefit from a partnership across a whole range of fibrosis-focused treatments
IPF chart
Synairgen's interest is much wider than just IPF under new terms

Synairgen PLC’s (LON:SNG) £5m payment from Pharmaxis will boost cash sufficiently to fund fully the SNG001 Phase IIa trial of inhaled interferon in COPD, says broker finncap.

As well as the cash, Synairgen will also receive 17% of all partnering proceeds for Pharmaxis’ LOXL2 development pipeline in all fibrotic indications, including NASH, IPF, heart and kidney – significant areas of interest from large pharma.

READ: Synairgen shoots higher on new terms for fibrosis collaboration

The broker adds that Synairgen will also be able to explore other opportunities in which it can use its respiratory models to generate incremental value for shareholders, in the same way that it has shown for the LOXL2 programme.

The two companies have been collaborating on the development of a Lysyl Oxidase type 2 (LOXL2) inhibitor (PXS-5382) to treat lung and liver fibrosis.

Richard Marsden, Synairgen’s chief executive, said the new terms give it the opportunity to benefit from a partnership across a whole range of fibrosis-focused treatments.

“Having previously been focused toward a lung-related partnering transaction, this change in terms enables Synairgen to benefit significantly from any licence(s) in the non-lung related fibrosis arena." 

READ: Synairgen planning winter trial as it develops inhaled interferon beta drug for COPD

Under the revised terms, Pharmaxis will take on full operational responsibilities for the programme, including the ongoing Phase I trial of PXS-5382.

Pharmaxis is independently developing a second treatment to cover multiple fibrotic conditions and Marsden said it made sense to have a single point of focus in any partnering discussions. 

The Aussie firm has already negotiated one major partnership with Boehringer Ingelheim for a compound for liver complaint non-alcoholic steatohepatitis or NASH.

Marsden added: "Under the existing collaboration, Synairgen generated excellent data to support progression in the rare fibrotic lung disease idiopathic pulmonary fibrosis (IPF) and Pharmaxis has focused on the potentially larger indications of liver fibrosis (including non-alcoholic steatohepatitis (NASH)), cardiac fibrosis and kidney fibrosis.

“As we draw nearer to an optimal point for partnering the programme, it is more effective and should be more value enhancing to hand all control of the development to Pharmaxis to enable a single point of focus for multi-indication partnering discussions.”

Timetable points to mid-2018 as key point

Results from PXS-5382A's Phase I trial are scheduled for the middle of 2018, after which the aim is to find a partner to license the drug due to size of the potential market and number of indications it could address.

WATCH: Synairgen's chief hails exciting IPF data from LOXL2 inhibitor programme

“PXS-5382A is a very valuable candidate with potential applications in a number of fibrotic conditions with very substantial market opportunities,” said Marsden.

"The effect of this novel inhibitor across different model types is very exciting, with the latest supporting data suggesting that PXS-5382A can significantly reduce lung fibrosis and therefore has the potential to improve lung function in severely ill patients.”

Data from AstraZeneca trial expected

The final assessment of the Phase II trial of interferon beta should also be released at some point this year.

Last October, FTSE 100-listed AstraZeneca halted work on the Phase IIa clinical trial after it struggled to find enough hard-to-treat cases among asthma sufferers.

At the time, Synairgen said that based on the biomarker, lung function and safety data, it may be developed to treat lung diseases where viral infections are a real problem, such as chronic obstructive pulmonary disease (COPD) though first management wanted to see the data from the AZ study of asthma patients.

"We remain positive about the potential of inhaled interferon beta, particularly for patients with COPD who suffer due to respiratory viruses,” said Marsden.

“Once we have completed the data analysis, we will provide an update on the programme and our plans for future development."

View full SNG profile View Profile

Synairgen plc Timeline

Big Picture
March 15 2018

Related Articles

spreadsheet and calculator
January 25 2018
According to one City number cruncher, Ergomed’s drugs safety unit alone is worth as much as the whole business
The Hydroponics Company Ltd issued a cannabis research licence
July 11 2017
The licence allows Canndeo to build its exclusive Plant Breeders Rights.
newspaper with word cancer magnified
January 15 2018
"In our view, the potential for SCIB1 [Scancell's skin cancer treatment], as already demonstrated by the survival data, is remarkable," said one broker recently

No investment advice

The information on this Site is of a general nature only. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions. You acknowledge and understand that neither the Company, its related bodies corporate, the information providers or their affiliates will advise you personally about the nature, potential value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You should read our FSG and any other relevant disclosure documents and if necessary seek persona advice prior to making any investment decision.

You understand and agree that no Content (as defined below) published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person.

You understand that in certain circumstances the Company, its related bodies corporate, the information providers or their affiliates may have received, or be entitled to receive, financial or other consideration in connection with promoting, and providing information about, certain entities on the Site and in communications otherwise provided to you.

You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Before you act on any general advice we provide, please consider whether it is appropriate for your personal circumstances.

© Proactive Investors 2018

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use