Pfizer Inc. (NYSE:PFE) bought a minority share in AM Pharma, a Dutch based biopharmaceutical company engaged in treating conditions like acute kidney injury. Moreover, Pfizer took an exclusive option, wherein it can to buy the entire company upon exercising the option. The stock of Pfizer has delivered a year to date returns of 8.2%.
AM Pharma’s value addition
Pfizer interest in AM pharma is mainly for the latter’s potential treatment for patients with Acute Kidney Injury and other inflammatory diseases. On March 2014, AM Pharma reported promising Phase I data for recAP, the drug candidate to treat acute kidney injury for sepsis. There are no approved drugs for treating this condition in the current scenario, and the only option for treating this is dialysis and supportive care. The drug can also be a treatment for ulcerative colitis.
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Pfizer paid $87.5 million to AM Pharma and can pay more till $512.5 million by exercising options on completion of Phase II trials of reCAP. The trial results for this drug candidate is estimated by 2016. Meanwhile, in September 2014, AM-Pharma rose 12.2 million-euro through financing, led by Gilde Healthcare and backed by investors which include AbbVie Inc, BB Biotech Ventures, Inventages, Idinvest Partners and Kurma Biofund.
Pfizer is on an acquisition spree to restore its portfolio as its major revenue generating drugs like Lipitor have lost their U.S patent protection, enabling lower price generic drugs to capture the market. Quite recently, there were rumors on Pfizer’s potential bidding for Swedish Orphan Biovitrum AB (Sobi), which has a market value of approximately 37.9 billion Swedish crowns. On November 2014, Pfizer entered into a strategic alliance with Merck KGaA, Germany,to develop “an investigational anti-PD-L1 antibody”. Both companies will evaluate the potential of this anti-PD-L1 antibody as a single agent and also through combinations with their broad portfolio of oncology therapies.
Last month, The Company’s XALKORI® (crizotinib) drug candidates, for treating patients with ROS1-Positive Non-Small Cell Lung Cancer got U.S. FDA approval. Moreover, the company’s Phase 3 study for treatment of inotuzumab ozogamicin encountered its “first primary endpoint for adult patients having relapsed or refractory acute lymphoblastic leukemia”.
Last week, Pfizer reported two new appointments to its global research and development departments. Michael D. Ehlers will be the Group’s Senior Vice President and Head of BioTherapeutics Research & Development, as well as the Site Head for Pfizer’s Cambridge and Boston, Massachusetts locations. John Lin will be the Senior Vice President and Chief Scientific Officer of Rinat.