US-based drugmaker Pfizer has purchased a minority equity interest and received an exclusive option to acquire the remaining equity in a Dutch biopharmaceutical firm, AM-Pharma.
AM-Pharma is involved in the development of recombinant human Alkaline Phosphatase (recAP) for inflammatory diseases.
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As part of the deal, AM-Pharma has received an upfront payment of $87.5m from Pfizer for the minority equity interest and exclusive option.
The deal will also include additional potential payments of up to $512.5m upon option exercise and potential launch of any product that may result from this agreement.
Pfizer worldwide research and development president Dr Mikael Dolsten said: "Clinical data for recAP show the potential to uniquely address acute kidney injury in the setting of sepsis, and we look forward to working with our partners at AM-Pharma as we aim to accelerate the development of recAP into a potential first-in-class treatment for patients."
Pfizer will be eligible to exercise option, after the completion of a Phase II trial of recAP in the treatment of acute kidney injury (AKI) related to sepsis.
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By GlobalDataAccording to Pfizer, there are no drugs currently approved for AKI condition and the only treatment option is dialysis and supportive care and Phase II trial results are expected to be released in the second half of 2016.
AM-Pharma is also developing recAP as a treatment for ulcerative colitis (UC) and hypophosphatasia (HPP).
AM-Pharma CEO Erik van den Berg said: "This deal not only provides good shareholder value, but provides the next step in the development of recAP as a potential treatment for patients with acute kidney injury and other inflammatory diseases."
Image: Pfizer world headquarters. Photo: courtesy of Jim.henderson.
