Elobixibat approved in Japan for the treatment of chronic constipation

20 January 2018

Japan’s Ministry of Health, Labor and Welfare (MHLW) has approved the new drug application for elobixibat for the treatment of chronic constipation in Japan, according to the drug’s developer, Albireo Pharma (Nasdaq: ALBO), a biotechnology company spun out from Anglo-Swedish drug major AstraZeneca in 2008.

The approval of elobixibat in Japan triggers payments to Albireo subsidiary Elobix AB from EA Pharma under the terms of a license agreement and from HealthCare Royalty Partners (HCR), subject to customary closing conditions, under the terms of a royalty monetization agreement announced earlier this year, which together total more than $55 million. At December 31, 2017, Albireo had around $53.5 million in cash and cash equivalents.

Shares of Albireo leapt nearly 10% to $33.00 by close of trading on Friday in the USA, where the company is now headquartered.

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