Paion value upgraded on sealing remimazolam deal

Formalization of German drug developer Paion AG’s (FSE: PA8) out-licensing agreement with Yichang for the Chinese rights to short-acting anesthetic remimazolam brings a modest financial benefit and provides some flexibility while the company identifies suitable new assets to add to its anaesthetics and critical care portfolio, comment analysts at Edison Investment Research.

The acquisition of German distribution rights to the first of these additional assets, ultra-short acting anesthetic remifentanil, were announced recently. The increase in the proportion of day-case and minimally invasive surgeries is driving the use of short-acting general anesthetics such as remimazolam. In recognition of this progress, the analyst have increased their valuation of the company to 54 million euros ($66.6 million) from 44 million euros.

The deal represents progress in the reinforcement of its specialty niche in anesthesia and sedation, leveraging the positive Phase IIb safety and efficacy data from Ono’s study in colonoscopy patients. The Chinese deal should accelerate the development of remimazolam and improves the probability of attracting partners in other territories.