Pharmaxis Ltd (ASX:PXS) (FRA:UUD) will boost its financial position after selling distribution rights in Australia, New Zealand and several Asian territories for its cystic fibrosis product Bronchitol® and asthma diagnostic Aridol® to Bioimpact Pty Ltd, a subsidiary BTC Health Ltd (ASX:BTC).
A distributor appointment fee of A$2 million will be received within 10 business days and Pharmaxis will manufacture and supply the products to BTC Health from its factory in Sydney, which also makes and exports products to the US, EU, Asian and Russian Markets.
The sale of selected distribution rights enables Pharmaxis to continue streamlining its mannitol respiratory business, achieving ongoing savings in marketing and regulatory expenses.
“Choosing right partner a priority”
Speaking to the sale, PXS chief executive officer Gary Phillips said: “We set out our strategy of generating non-dilutive cash and cost savings from the mannitol respiratory business late last year when Bronchitol was approved in the United States by the FDA.
“This agreement with BTC Health is part of that strategy which has also seen US$10 million in milestone payments received from Chiesi and a A$2 million deal with GEN for the Russian Bronchitol rights.
“The initial clinical trials for both Aridol and Bronchitol were conducted in Australia and subsequently Australian patients were first to benefit from commercialisation of these two innovative products.
“Choosing the right distribution partner has been a priority for us and I am delighted to have concluded this agreement with BTC Health, who provide first class support for customers and patients.”
Marketing authorisations acquired
Australian listed entity BTC Health is a high-growth company, focused on making world-class innovative medical products available to patients in Australia and New Zealand.
Under the terms of the agreement, BTC Health will acquire the marketing authorisations for both products in Australia and New Zealand, Singapore, Malaysia and Hong Kong and in South Korea for Bronchitol only.
Pharmaxis will supply both products as finished packs to BTC Health, which has purchased the distribution rights with immediate effect from July 1, 2021, and plans to provide uninterrupted and enhanced product support in the market.