Pharmaxis Announces Significant Business Milestones
Release Date: 23/12/2014 12:00am
Pharmaceutical company Pharmaxis (ASX: PXS) today announced it has entered into an exclusive distribution and supply agreement with global pharmaceutical company Chiesi Farmaceutici SpA (Chiesi) for the commercialisation of Bronchitol® (mannitol) in the United States. As a precursor to this agreement Pharmaxis has settled its dispute with NovaQuest Pharma Opportunities Fund III (NovaQuest) and entered an Amended and Restated Financing Agreement.
Under the terms of the commercialisation agreement Chiesi is responsible for funding up to US$22 million of the cost of the phase 3 clinical trial of Bronchitol which recently enrolled its first patient. Subject to approval in the United States, Bronchitol will be sold as part of Chiesi’s cystic fibrosis portfolio which includes Bethkis®(tobramycin inhalation solution) and Pertzye® (pancrelipase) delayed-release capsules, both launched in the US earlier this year. Milestones totaling up to US$25 million are payable tied to the launch of Bronchitol, and on achieving certain annual sales levels.
Pharmaxis will manufacture Bronchitol on commercial terms for Chiesi but should it be independently sourced in the future by Chiesi, the Agreement provides for an ongoing share of sales revenue for Pharmaxis.
Under the terms of the amended Financing Agreement, NovaQuest will receive reduced financial terms on its existing US$20 million investment and no further investment by NovaQuest is required.
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