ContraVir Strikes Deal With Rival Early Stage Hep B Drug Developer
Executive Summary
ContraVir Pharmaceuticals Inc. is merging with competitor early stage hepatitis B drug developer Ciclofilin Pharmaceuticals to strengthen its pipeline offering in antivirals.
ContraVir CEO James Sapirstein said the deal would "firmly position ContraVir as an important player in the hepatitis B space."
Ciclofilin's lead development candidate, CPI-431-32, is a next-generation non-immunosuppressive cyclophilin inhibitor shown to have a significantly larger selective index compared with previously known cyclophilin inhibitors. Ciclofilin's compound is still in preclinical studies but is expected to enter the clinic in 2017.
ContraVir highlighted that CPI-431-32 blocks the hep B virus's ability to "hijack" CyP, and has also been shown to inhibit entry of the virus into liver cells as well as reduce or eliminate production and secretion of key hepatitis B antigens (HBsAg and HBeAg).
As part of merger agreement, Ciclofilin's founder and CEO Dr. Robert Foster will join ContraVir as chief scientific officer. He will continue to lead the development of CPI-431-32 into IND-enabling studies.
ContraVir's own hep B offering includes CMX157, a lipid conjugate of tenofovir that is currently undergoing Phase Ib/II clinical trials.
Sapirstein said Ciclofilin's drug is believed to be a "superior molecule." He added that the mechanism of action of CPI-431-32 was complementary to CMX157, as each inhibits distinct critical steps in the viral life cycle, adding robustness to the combined company's hep B portfolio.
The merger has been approved by the board of directors of both companies and following the completion of the transaction Ciclofilin will become a wholly owned subsidiary of ContraVir. Under the agreement, ContraVir will acquire all outstanding equity interests in Ciclofilin for the right to receive future milestone payments which will be allocated among the holders of Ciclofilin common stock. The milestone payments will consist of up to an aggregate $17m cash and up to 10% of ContraVir's issued and outstanding common stock and will be paid upon the achievement of certain developmental and/or regulatory milestones related to CPI-431-32.