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Pharmaxis boosts cash position securing sustainable future

Large pharma companies are being attracted to the company’s drug development portfolio.

Laboratory tests
Earlier this year, pharma giant Merck & Co bid A$502 million for Viralytics Ltd (ASX:VLA)

Pharmaxis Ltd (ASX:PXS) finished the March quarter with $34.5 million thanks in part to a $15 million milestone payment from drug licence partner Boehringer Ingelheim.

This strong financial position provides the company with certainty while it continues to extract value from its portfolio of developing drug assets.

 

The company’s goal is to identify unmet needs in human health, discover and develop new solutions and then sell those assets on to large pharma companies.

Pharmaxis demonstrated its capability in this area with the program it sold to Boehringer in 2015 which has potential to be worth up to $625 million.

The next potential payment milestone for Pharmaxis is the commencement of phase III trials by Boehringer which can unlock up to $94 million.

Growth in Europe for Bronchitol

As well as developing drugs and seeking partnerships, Pharmaxis has two respiratory products approved in various world markets that it manufactures at its facility in Australia.

Bronchitol for cystic fibrosis has been the subject of three large-scale clinical trials and is approved and marketed in Europe, Russia and Australia.

Aridol for the diagnosis and assessment of asthma is approved and marketed in Europe, Australia and Asia.

Notably, sales for Bronchitol in Western Europe during the March quarter were $963,000 compared to $887,000 in the March 2017 quarter and $587,000 in the December 2017 quarter.

Russia and US represent market growth opportunities for Pharmaxis.

LOXL2 inhibitor program receiving interest from large pharma

Pharmaxis’ anti fibrotic LOXL2 inhibitor program is reaching its conclusion and attracting strong interest from multiple potential large pharma partners.

Phase I clinical trials that commenced in the second half of 2017 have completed the single ascending dose stage and are proceeding into the final multiple ascending dose stages this quarter before reporting in the September quarter.

Three-month tox studies and the scale-up of manufacturing have commenced so that a potential partner will be able to commence phase II studies without delay.

Quick facts: Pharmaxis Ltd

Price: 0.265 AUD

ASX:PXS
Market: ASX
Market Cap: $104.59 m
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Pharmaxis hopeful of FDA approval for cystic fibrosis inhalation medicine...

Pharmaxis Ltd (ASX:PXS) chief executive officer Gary Phillips updates Proactive Investors on the FDA approval timeframe for the company’s Bronchitol inhalation medicine used to treat adult cystic fibrosis patients. The healthcare-focused company is confident it will meet information...

on 13/8/19

2 min read