Here are some examples put out by Proactive Investor article of recent NASH biotech buy-out activity because of the massive NASH market which is also an area Dimerix is targeting @Ahmed - any thoughts?
Dimerix is building a pipeline from its GPCR platform, with potential candidates for pre-clinical development in nonalcoholic steatohepatitis (NASH), diabetic retinopathy, cancer fatigue and multiplesclerosis. We see any developments in the pipeline, such as was recently reported for the NASH candidate, as strengthening sentiment towards Dimerix as an identifier of druggable GPCR targets.
- Below, makes for an interesting read and may open up another conversation "The recent takeover activity has created a surge in share prices amongst the publicly listed NASH space with a number of NASDAQ listed pharmaceutical companies rallying."
Notes: something to put to management as having that dual listing is potentially a game changer for down the track and considering if all goes well we could be commercializing DMX200 within 2 - 2.5 years from now
Pharmaxis Ltd stands to gain as NASH biotech acquired for US$1.7B
Monday, September 26, 2016 by Proactive Investors
http://www.*.com.au/genera//img/companies/news/asx_room_358_57e88d2f16127.jpg Pharmaxis Ltd (ASXXS) stock is set to benefit from a recent landmark takeover of a U.S. based micro-cap company focused on the liver disease, NASH.
Tobira Therapeutics Inc (NASDAQ:TBRA), was acquired in a deal worth up to US$1.7 billion, 19 times its previous market value.
Pharmaxis has already sold a drug to treat NASH to Boehringer Ingelheim in May 2015 and is working on a second drug that inhibits LOXL2 as a way to treat more severe NASH.
The recent takeover activity has created a surge in share prices amongst the publicly listed NASH space with a number of NASDAQ listed pharmaceutical companies rallying.
Pharmaxis has received strong interest from large pharmaceutical companies with regard to the LOXL2 program.
Takeover offer details
Last week, Dublin-based Allergan PLC agreed to buy Tobira in a deal worth as much as US$1.7 billion, or 19 times Tobira’s previous market value.
Tobira focuses on developing products that treat NASH, however in July this year its Phase IIb trial to treat NASH failed to meet the primary endpoint.
Shares in Tobira have surged 720% to US$39.11 compared with the pre-offer close of US$4.74.
Tobira now has a market value of circa $725 million, up from $90 million.
Share price gains
Allergan’s agreement to buy Tobira has been a catalyst for biotech and NASH stocks.
Since the close of trading last Monday, the following NASH stocks are:
- up 20.5% Conatus Pharmaceuticals Inc (NASDAQ:CNAT);
- up 62.5% Galectin Therapeutics Inc (NASDAQ:GALT); and
- up 6.0% Intercept Pharmaceuticals Inc (NASDAQ:ICPT).
Background
Pharmaxis is a pharmaceutical research company with a portfolio including two respiratory products approved in various world markets and a research pipeline focused on areas of high unmet clinical need in inflammatory and fibrotic diseases.
The company’s product pipeline is founded on its expertise in the chemistry of amine oxidase inhibitors.
This expertise has attracted interest from leading pharmaceutical companies looking to make acquisitions or partner in this rapidly expanding area of medical need.
In May 2015, Boehringer Ingelheim acquired the Pharmaxis phase 1 investigational drug PXS-4728A, to develop it for the treatment of the cardiometabolic liver-related condition NASH.
This involved an upfront payment of €27.5 million and a total potential deal value of over A$750 million.
Boehringer is due to pay another milestone when they commence a phase 2 trial expected in 2017.
LOXL2
Activation of LOXL2 in the human body leads to fibrosis. Pharmaxis is targeting LOXL2 to reduce liver fibrosis and the liver disease NASH
Liver disease and NASH remain priorities for many big pharma companies.
Competing drugs are about to enter phase 3 and are attracting attention due to their stage of development but there is no sense that these drugs will be a solution.
A significant number of big pharma companies are investing in the NASH space with Deutsche Bank forecasting the NASH market to be valued at $35 billion by 2025.
Pharmaxis is planning to select a LOXL2 drug candidate and commence full preclinical studies in 2H 2016 before the commencement of a phase 1 clinical trial in 2017.
Analysis
Market activity in the past has already confirmed that the treatment of NASH is one of the hottest areas in biotech and Allergan’s takeover bid for Tobira has only added fuel to the fire.
The premium paid by Allergan is a testament to the genuine interest of big pharma to enter the NASH space.
The deal included an upfront cash payment of US$28.35 per share, representing a 498% premium - in recent years, the U.S. pharmaceutical deal with the highest premium paid stands at 256%.
Interestingly, Allergan still paid top dollar for Tobira despite its failure to meet the primary endpoint for its Phase IIb trial completed in July.
Pharmaxis is very well positioned within the NASH market given its deal with Boehringer and development of a LOXL2 drug for NASH.
The company remains under the radar and stands to gain from the surging NASH space.
Reaching drug development milestones and entering new partnerships are significant catalysts for Pharmaxis as shown by the Boehringer deal, which has a potential deal value of over A$750 million.
The company had $39.2 million in cash at the end of the June quarter.
@Ahmed - any thoughts?
(20min delay)