Pharmaxis (ASX:PXS) shares performed well yesterday closing up 11.5% to $0.29, a share price high for May.
Strong trading was driven by the company’s drug development partner, Boehringer Ingelheim, confirming that a phase 2 study for a second disease indication from drug PXS-4728A will commence this year.
The second indication study will trigger an additional €10 million payment to Pharmaxis, which is in addition to the already expected €18 million payment for the scheduled mid-year phase 2 trial.
Boehringer acquired PXS‐4728A from Pharmaxis in May 2015 with initial clinical development focused on finding a treatment for the liver disease known as NASH.
This involved an upfront payment of €27.5 million and a total potential deal value of over A$750 million.
Boehringer is responsible for all development, regulatory, manufacturing and commercialisation activities.
Pharmaxis entered the current June quarter with $26.5 million in cash and these two expected payments are looking to add another A$42 million in 2017.