Cubist gains exclusive option to acquire Adynxx

US drugmaker Cubist Pharmaceuticals (Nasdaq: CBST) has entered into an option agreement with privately-held, clinical-stage pharma company Adynxx, under which Cubist has the exclusive right to acquire Adynxx following the data readout of the latter’s Phase II trial for its lead product candidate, AYX1.

Although financial terms were not disclosed at this stage, pursuant to the agreement, Cubist will pay Adynxx to secure the option right. Cubist will fund the consideration with cash on hand. If Cubist exercises its right to acquire Adynxx, Cubist will make additional payments to the Adynxx stockholders.

Adynxx is studying AYX1 as a potential treatment for the reduction of acute pain and prevention of persistent and chronic pain following surgery. The current Phase II study is designed to assess the ability of a single administration of AYX1 at the time of unilateral total knee arthroplasty to reduce movement evoked pain, as well as improve the rate and extent of functional recovery. AYX1 targets EGR1 which is a key transcription factor in the establishment of pain that is rapidly induced after painful stimuli or injury.