Pharmaxis is a Sydney based pharmaceutical research company, which engages in the development and commercialization of therapeutic products for chronic respiratory disorders, autoimmune diseases, and improved lung function tests. It operates through the following segments: Mannitol Business and New Drug Development. The Mannitol Business segment covers the clinical development, manufacture and sale of Bronchitol and Aridol globally. The New Drug Development segment encompasses the drug discovery and early stage clinical development of the group’s new drug candidates. Pharmaxis is in its clinical drug development stage and is targeting fibrosis and cancer.
Pharmaxis (ASX:PXS) Shares Price Jumped 9% on Sale of Distribution Rights
This morning, Pharmaxis announced the sale of the distribution rights in Russia for its cystic fibrosis product Bronchitol. In addition to the A$2m sale price, Pharmaxis has secured ongoing annual savings of A$1m in marketing and regulatory expenses. Pharmaxis will continue to manufacture and export Bronchitol to Russia from its factory in Sydney that also supplies the US, European and Australian markets.
In addition to the distribution rights, Pharmaxis also announced a capital raising today via a placement offer. The placement is aimed at institutional investors to raise approximately A$4.4m at A$0.08 per share. The funds raised will be used to strengthen the firm’s balance sheet as the Company conducts a study in myelofibrosis with its lead drug PXS‐5505, and a phase 1c study in patients with problematic skin scarring with its topical drug PXS‐6302.
Post the fundraise, Pharmaxis will have about A$20 million in cash in the bank. PXS shares closed $0.084 today after surging over 6% on the back of these two major announcements.
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