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- Pharmaceutical research company Pharmaxis (PXS) has bought forwards its US$10 million (nearly A$14 million) initial milestone payment for its Bronchitol formulation
- Bronchitol is a treatment for people with cystic fibrosis which helps clear mucus from the lungs
- Out of the US$10 million, Pharmaxis will have access to US$7 million (around A$10 million), which will be paid out by U.S. disstributor Chiesi Farmaceutici
- The company will receive the money once the Food and Drug Administration (FDA) approve Bronchitol
- Meanwhile, the remaining US$3 million (roughly A$4.18 million) will be paid on the shipment of Pharmaxis’ commercial launch stock
- Pharmaxis is up 15.3 per cent on the market this afternoon and is trading for 9.8 cents per share
Pharmaceutical research company Pharmaxis (PXS) has bought forwards its US$10 million (nearly A$14 million) initial milestone payment for its Bronchitol formulation.
Bronchitol is an approved treatment for certain patients with cystic fibrosis which helps clear mucus from the lungs. The product is to be used twice daily using a small handheld device.
Out of the US$10 million, Pharmaxis will have access to US$7 million (about A$10 million), paid out by U.S. distributor Chiesi Farmaceutici. The company will receive the money once the Food and Drug Administration (FDA) approve Bronchitol, which is expected to happen on November 1.
Chiesi is the exclusive distributor of Bronchito in the U.S. and eleven countries in the European Union.
The remaining US$3 million (roughly A$4.18 million) will be paid on the shipment of the commercial launch stock, which is expected to happen in the first quarter of 2021.
“Approval by the FDA for Bronchitol would see the mannitol business segment (Bronchitol and Aridol) generate immediate cash and move into profitability,” CEO Gary Phillips said.
“FDA approval would also provide an opportunity to investigate different ways of structuring the Pharmaxis business and funding our drug development activities,” he added.
Bronchitol has been already been approved in Australia, Europe, Russia and several other countries.
Pharmaxis is up 15.3 per cent on the market this afternoon and is trading for 9.8 cents per share at 3:48 pm AEST.
