Pharmaxis Ltd (ASX:PXS) has completed a successful round of meetings at the annual BIO International Convention in San Francisco.
BIO is the largest global event for the biotech industry with nearly 16,000 industry leaders from 76 countries attending the conference and over 3,400 companies participating in partnering meetings.
As the company's drug discovery efforts are commercially driven, Pharmaxis used the opportunity to meet with representatives from its target customers - large pharmaceutical companies.
Pharmaxis turned down over 100 meeting requests to focus on its core objectives.
On the agenda for Pharmaxis CEO Gary Phillips was to:
- Update companies who have previously discussed the company’s LOXL2 anti fibrotic program as to progress and timelines
- Evaluate interest in the Pharmaxis SSAO/MAOB program for neuro inflammation; and
- Obtain indicative feedback on the company’s antisense program (ASM8).
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.
LOXL2
Activation of LOXL2 in the human body leads to inflammation. Pharmaxis is targeting LOXL2 to reduce liver fibrosis and liver disease known as non-alcoholic steatohepatitis (NASH).
Feedback from the BIO conference confirmed 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 on track 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.
SSAO/MAOB
Activation of SSAO/MAO-B in the human body leads to neuro inflammation. Pharmaxis is targeting SSAO/MAO-B for possible application in Alzheimer's disease, Parkinson's disease and stroke. Globally,
Alzheimer's retains strong interest with predictions that it will become the first trillion dollar market.
ASM8
ASM8 is an inhaled product originally positioned for asthma but Pharmaxis used the conference to test interest from partners who may have an alternative use for it.
Feedback suggested there were alternative targets for the drug in orphan diseases and a number of Chinese companies are also planning to evaluate its potential in the fast growing Chinese asthma market.
Analysis
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.
Gary Phillips attendance at the 2016 BIO International Convention gave Pharmaxis an opportunity to market its drug development pipeline on an international scale and to garner valuable feedback on how to ensure its development programs are taking the most commercially driven pathways.
Pharmaxis is planning to nominate a LOXL2 candidate during 2H 2016.
The company had $41.5 million in cash at the end of March with an upcoming $25 million milestone payment due in Q1 2017.
Pharmaxis maintains coverage from an independent investment research house with a recommendation of Speculative Buy Class B.
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