Santhera acquires Oy Juvantia Pharma and its dyskinesia candidate
This article was originally published in Scrip
Santhera Pharmaceuticals has exercised its option to acquire the Finnish company Oy Juvantia Pharma in order to secure all rights to the dyskinesia treatment JP-1730 (fipamezole).
The Swiss company will issue up to 105,973 previously reserved shares to Juvantia's investors as part of a deal that the two companies signed in July 2006. Under the agreement, Santhera was responsible for conducting and funding further work on JP-1730 and was effectively granted the right to acquire Juvantia, securing all rights to the programme.
JP-1730, a selective alpha-2c adrenoceptor antagonist for the treatment of dyskinesia in Parkinson's disease, missed its primary endpoint in a Phase IIb trial earlier this year based on a change in the Levodopa Induced Dyskinesia Scale rating in the US and Indian study population. However, Juvantia and Santhera decided to continue with the product's development given that the data suggested a higher dosage would demonstrate greater efficacy.
Santhera hopes to secure a partnering deal for JP-1730 before the end of the year, but partners may prefer to conduct additional dose-ranging trials before entering pivotal studies, Piper Jaffray analysts said. Nevertheless, Santhera's decision to exercise its acquisition rights suggests it remains confident that an attractive partnership can be agreed, the analysts added.
The shares issued to Juvantia will be listed on SIX Swiss exchange. After the deal's close Santhera's share capital will consist of 3,628,688 listed shares with a nominal value of CHF1 each and the available amount of authorised share capital will be reduced accordingly to CHF323,945.