Symplmed Wins Rights from XOMA - Analyst Blog
July 05 2013 - 4:39PM
Zacks
XOMA Corporation (XOMA) recently announced that
it has entered into an agreement with Symplmed Pharmaceuticals, LLC
(founded by some ex- XOMA employees) to transfer the US development
and marketing rights to the perindopril franchise to the latter. In
exchange, XOMA will get a stake in Symplmed.
We note that the perindopril franchise includes Aceon (perindopril
erbumine), an angiotensin converting enzyme (ACE) inhibitor and
three other fixed dose combination (FDC) candidates.
Aceon is approved for treating patients suffering from essential
hypertension. The drug is also marketed for reducing the risk of
cardiovascular death or nonfatal myocardial infarction in patients
with stable coronary artery disease. Generic versions of the drug
are available in the US since 2009.
As per the terms of the agreement, XOMA will be entitled to
double-digit royalties on sales of FDC Aceon and
Pfizer’s (PFE) Norvasc (amlodipine besylate).
We note that Symplmed was founded by ex-Xoma employees including
Erik Emerson and Jeffrey Feldstein. They were responsible for the
management of the phase III study PATH (Perindopril Amlodipine for
the Treatment of Hypertension: n=837), which evaluated the
candidate in patients suffering from hypertension. Encouraging
results from the trial were presented in Nov 2012.
The phase III study compared the efficacy and safely of FDC
Aceon/Norvasc with Aceon or Norvasc alone. Data from the study
revealed a statistically significant reduction in both sitting
diastolic and sitting systolic blood pressure in patients in the
FDC arm compared to those treated with Aceon and Norvasc alone.
Symplmed plans to submit a new drug application (NDA) to the US
Food and Drug Administration (FDA) for the candidate by year end.
FDC Aceon/Norvasc is already marketed in 91 ex-US countries by
Laboratoires Servier, a privately-owned French pharmaceutical
company, under the trade name Coveram. Notably, in Jan 2011, XOMA
inked a deal with Les Laboratoires Servier to acquire the US rights
to the perindopril franchise from the latter.
XOMA carries a Zacks Rank #3 (Hold). Companies that currently look
attractive include Santarus, Inc. (SNTS) and
Jazz Pharmaceuticals (JAZZ). Both carry a Zacks
Rank #1 (Strong Buy).
JAZZ PHARMACEUT (JAZZ): Free Stock Analysis Report
PFIZER INC (PFE): Free Stock Analysis Report
SANTARUS INC (SNTS): Free Stock Analysis Report
XOMA CORP (XOMA): Free Stock Analysis Report
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