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Synairgen shares soar on AstraZeneca asthma deal

Published: 18:35 12 Jun 2014 AEST

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Shares in drug developer Synairgen (LON:SNG) shot up as it named pharma giant AstraZeneca (LON:AZN) as its new partner to develop its anti asthma drug.

The global  exclusive licence agreement is for SNG001, which one broker described as having "blockbuster"potential.

Astra will pay the firm an upfront payment of US$7.25mln immediately.

There are development and commercial milestones totalling US$225mln and up to mid-teen royalties payable on sales. 

AstraZeneca will be responsible for all future costs and early next year will kick off a Phase IIa study in patients with severe asthma, building on available clinical data from an initial Phase lla trial in a broad asthma population. 

Richard Marsden, Synairgen chief executive, said: "We're delighted that this truly innovative programme, discovered at the University of Southampton and developed by Synairgen, will be taken forward by AstraZeneca

"With its strong research focus and extensive experience in respiratory disease, AstraZeneca's commitment to developing novel medicines for patients with asthma and COPD makes them the ideal partner for SNG001."

Broker finnCap said: "With the deal encompassing the global asthma and COPD markets, we believe SNG001 has blockbuster potential. Although SNG001 will still have to pass through clinical development, we believe there is a lower risk of failure than other drugs at a similar stage of development. We estimate regulatory approval could be in 2021. We have re-visited our valuation, and raise our price target to 120p."

Shares rose 42.55%  to 75.5p each.

Synairgen PLC pleased with further positive data from lead COPD drug

Richard Marsden, chief executive of Synairgen plc (LON:SYN), tells Proactive's Andrew Scott data from the ongoing phase II study of their SNG001 drug suggests it's having the desired effect in boosting the antiviral defences of chronic obstructive pulmonary disease (COPD)...

on 28/6/18