Biotech company inks $230m deal

Biopharmaceutical company Dimerix has struck a deal worth up to $230 million to commercialise a treatment developed in concert with the University of Western Australia's Centre for Medical Research.

Shares in ASX-listed Dimerix soared 154 per cent to 15.5 cents at market close following the announcement on the major licensing deal. 

UK-based Advanz Pharma acquired the exclusive rights to commercialise a clinical-stage drug treatment called DMX-200 in the European Economic Area, the UK, Switzerland, Canada, Australia, and New Zealand.

Melbourne-based Dimerix’s flagship treatment is designed to treat a type of chronic kidney disease called focal segmental glomerulosclerosis (FSGS). The drug is in stage three clinical trials and is subject to approvals.

The drug was identified using Dimerix’s proprietary assay, Receptor Heteromer Investigation Technology, which was developed at UWA's Centre for Medical Research.

Under the deal, Dimerix will receive $10.8 million in an upfront payment and a potential development and commercialisation milestone payment of up to $219 million.

Dimerix will also be eligible to receive tiered, escalating, mid-teen to 20 percentage royalties on net sales of DMX-200 if successfully commercialised.

It's unclear whether UWA will receive royalties.

“We are excited to announce this partnership with Dimerix, which is fully in line with our strategy to be a partner of choice for the commercialisation of specialty, hospital, and rare disease medicines in Europe, Canada, and Australia. Advanz Pharma chief executive Steffen Wagner said.

“We are committed to bring innovative rare disease medicines to market which serve a high unmet patient need.”

The two companies will form a joint steering committee to align the development and commercialisation of the drug.

Dimerix will continue to pursue and progress licensing opportunities with potential partners outside the listed countries and areas.

Dimerix managing director Nina Webster said they were delighted to be partnering with Advanz.

“The Advanz team has a proven record in developing and commercialising medicines in areas with no approved therapies and high unmet needs,” she said.

“Advanz’s expertise and resources will be invaluable in supporting Dimerix to advance our shared goal of commercialising this novel treatment, and this partnership recognises the decade of work by our dedicated team, consultants, trial participants, and investigators in developing a new therapy for patients with FSGS.”