The pharma giant acquired a minority equity interest in the Dutch company. Pfizer may also option the remaining equity, thus acquiring the company, or make milestone payments for product launches, with a potential bill of up to $512.5m.
Pfizer may exercise its option depending on the results of AM-Pharma’s Phase II study of reCAP used on Acute Kidney Inury (AKI) related to sepsis. If approved, the drug would be the first approved for this condition. Current treatment options are dialysis and supportive care.
Trial results are expected in late 2016.
“Pfizer is committed to advancing the science to address the high unmet medical need in Acute Kidney Injury,” said Mikael Dolsten, President, Worldwide Research and Development at Pfizer.
“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.”
Erik van den Berg, CEO, AM-Pharma said the deal is good news for patients and investors. “This agreement is a significant step for AM-Pharma, and we welcome Pfizer as a shareholder and dedicated partner. 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.”
Other terms of the transaction were not disclosed.
AM-Pharma is also studying the effect of recombinant human alkaline phosphatase on ulcerative colitis (UC) and hypophosphatasia (HPP), a metabolic bone disease. Levels of alkaline phosphatase, which protects organs against inflammation and tissue damage, are reduced in patients with AKI, UC, and HPP.
Since its founding in 2001, the company has raised €67m in investment from AbbVie, Shire, Inventages, Forbion Capital Partners, Gilde Healthcare, Ysios Capital, Kurma biofund, IDInvest Partners, and BB Biotech Ventures. The most recent financing round in September 2014 raised €12.2m for the Phase II study AKI study currently underway, as well as development of an oral formulation of recAP for ulcerative colitis patients.