Specialist pharmaceutical company Pharmaxis Limited (ASX:PXS) has achieved an important step in appreciating the value of its cardiometabolic disease treatment with positive new trial results with partner Boehringer Ingelheim.
Early trials of the drug PXS-4728A – which is targeted at treating diseases such as non-alcoholic steatohepatitis (NASH) – have indicated that low doses are efficacious in long-lasting inhibition of an enzyme which reduces inflammation and oxidative stress.
The successful trial will enable one of the world’s 20 leading pharmaceutical companies, Boehringer Ingelheim, to proceed with further development of the program.
In May, in a landmark deal Boehringer Ingelheim agreed to pay €27.5 million or A$39 million upfront to Pharmaxis but could potentially be worth up to $A750 million in tiered and milestone payments.
The trial results could see further staged payments from Boehringer of up to a total of €55 million in development milestone payments tied to the commencement of phase 2 and 3 clinical trials.
Pharmaxis CEO Mr Gary Phillips said: It is rare to be able to demonstrate effective target engagement in a phase 1 study so the fact that the long lasting enzyme inhibition seen in the phase 1a study was reinforced when given once a day for 14 days adds to our confidence in PXS‐4728A.
"We now look forward to the next value appreciating steps as the clinical development program proceeds with Boehringer.”
NASH is becoming more prevalent and there is there is a clear need for more effective therapies.
Importantly, the first human trial of PXS-4728A has confirmed successful target engagement (enzyme inhibition) – a rare accomplishment in early-stage studies.
Pharmaxis’ recent progress developing PXS-4728A and lung disease treatment LOXL2 have supported increasing investor interest, particularly from substantial shareholder BVF Partners, which raised its holding in the company from 12% to 13% earlier this month.
Shares in Pharmaxis were trading as low as A$0.095 in March but have improved in line with the successful drug trialling this year to their most recent close of $0.205.
The stock should open higher today as investors absorb the latest PXS-4728A advancements. Boehringer is responsible for all development, regulatory, manufacturing and commercialisation initiatives.
Analysis
Back in May, Proactive opined there are significant price catalysts still ahead for Pharmaxis when the share price was sitting at $0.16.
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