Shire acquires Fibrotech for $75 million

Ireland-headquartered drugmaker Shire (LSE: SHP) has acquired Australian biopharmaceutical company Fibrotech for an upfront $75 million.

Shire will develop of Fibrotech’s fibrosis treatment FT011, which has completed a Phase Ia study in healthy volunteers and is currently in a Phase Ib study in patients with diabetic nephropathy. Subject to successful completion of this trial, the first Phase II study is expected to be initiated to enroll Focal Segmental Glomerulosclerosis (FSGS) patients next year. FSGS is a rare disease that affects the kidney’s filtering system causing serious fibrosis (scarring). The majority (85%) of cases are idiopathic and most of the patients progress to end-stage renal disease.

In addition to the lead compound FT011, Shire acquires Fibrotech’s library of novel molecules including another molecule, FT061, in preclinical development that has a similar mode of action to FT011. It is an oral small molecule with the potential to address both the inflammatory and pro-fibrotic components of fibrosis. The closing of the acquisition is subject to customary conditions, including approval of Australia's Foreign Investment Review Board.