Synairgen PLC (LON:SNG) shares shot higher as investors hailed a change to the terms of its fibrosis collaboration with Australian partner Pharmaxis (ASX:PXS)
Responsibility for the programme will be taken on by Pharmaxis, while Synairgen will receive a payment of £5mln and 17% of any partnership agreement.
The two companies have been collaborating on the development of a Lysyl Oxidase type 2 (LOXL2) inhibitor (PXS-5382) to treat lung and liver fibrosis.
Richard Marsden, Synairgen’s chief executive, said the new terms give it the opportunity to benefit from a partnership across a whole range of fibrosis-focused treatments.
“Having previously been focused toward a lung-related partnering transaction, this change in terms enables Synairgen to benefit significantly from any licence(s) in the non-lung related fibrosis arena."
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Under the revised terms, Pharmaxis will take on full operational responsibilities for the programme, including the ongoing Phase I trial of PXS-5382.
Pharmaxis is independently developing a second treatment to cover multiple fibrotic conditions and Marsden said it would made sense to have a single point of focus in any partnering discussions.
Synairgen will retain a 17% interest in any partnership across all fibrotic indications without any obligation in future to fund future developments.
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Pharmaxis has already negotiated one major partnership with Boehringer Ingelheim for a compound for liver complaint non-alcoholic steatohepatitis or NASH.
Marsden added: "Under the existing collaboration, Synairgen generated excellent data to support progression in the rare fibrotic lung disease idiopathic pulmonary fibrosis (IPF) and Pharmaxis has focused on the potentially larger indications of liver fibrosis (including non-alcoholic steatohepatitis (NASH)), cardiac fibrosis and kidney fibrosis.
“As we draw nearer to an optimal point for partnering the programme, it is more effective and should be more value enhancing to hand all control of the development to Pharmaxis to enable a single point of focus for multi-indication partnering discussions.”
Shares rose 32% to 14.5p.
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