Date: 2014-05-02
Type of information: Company acquisition
Acquired company: Fibrotech Therapeutics (Australia)
Acquiring company: Shire (UK - USA)
Amount: $75 million and certain contingent payments
Terms: * On May 2, 2014, Fibrotech, an Australian biopharmaceutical company developing a new class of drugs to prevent a massive health burden associated with fibrosis, has announced that it has reached an agreement with Shire, the global specialty biopharmaceutical company, under which Shire has agreed to purchase Fibrotech for an upfront payment of $75 million and certain contingent payments based on the achievement of development and regulatory milestones. The closing of the acquisition is subject to customary conditions, including approval of Australia's Foreign Investment Review Board.
Details: Shire will undertake the further development of Fibrotech\'s lead product FT011, which has completed a Phase 1A study in healthy volunteers and is currently in a Phase 1B study in patients with diabetic nephropathy. Subject to successful completion of this trial, the first Phase 2 study is expected to be initiated to enroll Focal Segmental Glomerulosclerosis (FSGS) patients next year. FSGS is a rare disease that affects the kidney's filtering system causing serious fibrosis (scarring). FT011 is the most advanced antifibrotic agent from a series of around 150 analogues of tranilast (Rizaben®) that Fibrotech has generated in recent years. In addition to the lead compound FT011, Shire acquires Fibrotech's library of novel molecules including another molecule, FT061, in pre-clinical development that has a similar mode of action to FT011. It is an oral small molecule with the potential to address both the inflammatory and pro-fibrotic components of fibrosis.
Related: Rare diseases
