Shares in biotech Pharmaxis go nuts on the $750 million sale of a liver drug

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Australian biotech Pharmaxis has sold a drug to treat a common liver disease to a German company in a deal worth $750 million.

The drug, called PXS4728A, is designed to treat NASH, a progressive form of non‐alcoholic fatty liver disease, the most common liver disorder in Western nations.  It is regarded as a major cause of fibrosis and cirrhosis of the liver.

CEO Gary Phillips says the deal with Boehringer Ingelheim has a total potential value of more than $750 million.

Pharmaxis will receive an upfront payment of Euro 27.5 million (approximately $39 million) and further payments over time, subject to the continuing successful development and commercialisation of PXS4728A.

It’s shares were trading almost 50% higher at $0.247.

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