Pharmaxis Ltd (ASX:PXS, OTC:PMXSF) has completed the sale of its mannitol respiratory business (MBU) to Arna Pharma Pty Ltd.
On October 3, 2023, PXS announced it would sell MBU as part of a major company restructure to focus on developing drugs to treat blood-related cancers.
The restructure involves the creation of clinical stage drug development company, Syntara as well as the sale of MBU, along with changes to the company’s board of directors.
Pharmaxis CEO Gary Phillips said at the time: “Over the last few years Pharmaxis has built a commanding position in lysyl oxidase biology and chemistry research.
"We have collaborated with leading clinicians and scientists worldwide and forged through the early-stage studies that have given us a clinical pipeline with great potential and resulted in multiple Nature publications.
“Building on this heritage and the proven capability of our discovery and development teams, the restructure announced today and the creation of Syntara enables us to focus and accelerate our clinical development programs.”
Arna Pharma takes over MBU operations
Arna Pharma, an Australian pharmaceutical company involved in a global healthcare alliance, has taken charge of the day-to-day operations of the Medical Business Unit (MBU), which includes Bronchitol® and Aridol®.
As per the sale agreement terms, Arna Pharma will compensate Pharmaxis for the lion's share of residual expenses incurred during the transition period, set to conclude in May 2024.
The divestiture of MBU and the subsequent restructuring within Pharmaxis are anticipated to slash annual core costs by more than 60%, amounting to a saving of over US$14 million annually.
Advances for myelofibrosis and other conditions
Pharmaxis continues to develop its drug PXS-5505, aimed at treating myelofibrosis, a bone marrow cancer that causes a build-up of scar tissue leading to diminished production of red and white blood cells and platelets.
The US Food and Drug Administration (FDA) has granted Orphan Drug Designation to PXS-5505 for the treatment of myelofibrosis and has approved an Investigational Drug Application (IND) to proceed with a phase 1c/2 clinical trial. Recruitment for the trial began in the first quarter of 2021, with final interim data reported in July 2023.
In addition to PXS-5505, Pharmaxis is also developing other drug candidates from its amine oxidase chemistry platform. These candidates target various fibrotic diseases, including kidney fibrosis, Non-alcoholic Steatohepatitis (NASH), pulmonary fibrosis and cardiac fibrosis.
The platform is also focused on fibrotic scarring resulting from burns and other trauma, along with additional inflammatory diseases. Specifically, PXS-4728 is under study in collaboration with Parkinson's UK as a leading SSAO/MAOB inhibitor, intended to treat sleep disorders and slow the progression of neurodegenerative diseases such as Parkinson's by reducing neuroinflammation.