Boehringer acquires Pharmaxis' Phase I anti-inflammatory candidate

German family-owned pharma major Boehringer Ingelheim has exercised its option and acquired Australian drugmaker Pharmaxis’ (ASX: PXS) investigational drug PXS4728A, to develop it for the treatment of the liver-related condition NASH (non-alcoholic steatohepatitis) and to prevent its consequences.

News of the transformational deal, which could be worth as much as A$750 million (about $605 million) to the company, sent Pharmaxis’ shares rocketing more than 51% to A$0.25 in trading today.

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 I clinical studies, demonstrating oral bioavailability, long-lasting target inhibition and good tolerability and safety.