Synairgen plc (LON:SNG) shares soared on Thursday after the respiratory drugs specialist confirmed its two Lysyl Oxidase Like 2 (LOXL2) inhibitors are now ready to enter phase II trials.
Pharmaxis, Synairgen’s partner in the programme, has received the results from three-month toxicology studies, completing the data package needed to advance talks with potential partners.
READ: Pharmaxis’ take on the latest progress
Aussie-listed Pharmaxis has been in talks with some “large pharma companies” over the past year or so and has now delivered the completed scientific package to those potential suitors.
“The successful completion of the longer-term toxicology studies completes the data set,” said Synairgen chief executive Richard Marsden.
“Pharmaxis is now conducting a final series of scientific briefings to potential partners. In accordance with the amended collaboration agreement with Pharmaxis, Synairgen will receive circa 17% of any future net partnering proceeds from all fibrotic indications for the LOXL2 inhibitors.
“We are really pleased about this positive development and look forward to further updates from Pharmaxis.”
Chances of ‘material upfront payment substantially increased’
Data from phase I trials back in November showed that the inhibitor compounds had the potential to be “best-in-class” treatments for a range of diseases such as Non‐alcoholic Steatohepatitis (NASH) and idiopathic pulmonary fibrosis (IPF).
“These data complete the overall phase I data package enabling Pharmaxis to conduct a final series of scientific briefings with potential partners before licensing,” said finnCap analyst Mark Brewer in a note to clients.
“Given the significant interest in NASH from large pharma and the sizable licensing deals (both upfront and long-term ‘bio-dollars’) that have historically completed in this field, the probability of Synairgen receiving a material upfront payment has substantially increased.”
Synairgen shares surged 17.6% to 15.9p on Thursday.
