Pfizer expands rare disease portfolio with acquisition of clinical stage biotech

US pharma giant Pfizer (NYSE: PFE) has entered into a definitive agreement to acquire Swiss rare diseases focused biotech Therachon Holding, which has assets in development for the treatment of achondroplasia and short bowel syndrome (SBS).

Under the terms of the deal, Pfizer will pay $340 million upfront with a further $470 million in additional payments contingent on the achievement of key milestones in the development and commercialization of TA-46 for the treatment of achondroplasia, a genetic condition and the most common form of short-limbed dwarfism.

There are no Food and Drug Administration-approved therapies for achondroplasia, although several experimental candidates are in clinical testing. BioMarin (Nasdaq: BMRN) is farthest along in development for an achondroplasia treatment with its vosoritide. Denmark’s Ascendis Pharma (Nasdaq: ASND) also has a potentially competing therapy, TransCon CNP.