Pharmaxis buys Topigen in all-stock deal
Australia's Pharmaxis announced today that it plans to acquire Topigen Pharmaceuticals in an all-stock deal. Pharmaxis will issue 3.2 million shares of its stock on closing with an additional 5 million shares to be issued subject to the achievement of milestones specified in the purchase agreement. The deal is expected to close within the next 60 days. Topigen is developing treatments for chronic respiratory and immune disorders that Pharmaxis says complement its own pipeline of drugs.
"The larger business infrastructure and late stage pipeline of Pharmaxis, combined with the innovation and attractive target product profiles of Topigen's emerging drug candidates makes a compelling combined entity," says Gary Lessing, chairman of Topigen's board. "The transaction represents a very logical strategic exit for our investor base and provides a solid platform to leverage further value."
As a result of the deal, Topigen and partner NicOx mutually agreed to terminate their collaboration for TPI 1020. The companies had conducted two Phase IIa studies of the drug for asthma and COPD. After reviewing Topigen and Pharmaxis' combined pipeline, Topigen has elected not to continue development of TPI 1020.