India largest drug maker Sun Pharma’s subsidiary Taro Pharmaceuticals has entered into an agreement with Canadian biopharmaceutical firm Bellus Health to buy its subsidiary Thallion, including the rights to the drug candidate Shigamab in all cash-deal.
- Who acquired: Taro Pharmaceuticals – It is subsidiary of Sun Pharma
- What acquired: Thallion Pharma – It is subsidiary of Bellus Health
- Why this deal: Objective of the acquisition is to expand its innovative product development by the acquisition of Shigamab orphan drug candidate
Financials of the deal
As per the agreement, Taro acquired all issued and outstanding shares of Thallion for a potential total consideration of CAD$2.7 million, consisting of an upfront payment of CAD USD2.3 million and a potential future payment of CAD USD 0.4 million contingent upon the completion of a pre-established milestone event, expected to occur within 24 months of the closing of the transaction.
Shigamab is a monoclonal antibody therapy being developed for the treatment of Hemolytic Uremic Syndrome caused by Shiga toxin-producing E. coli (sHUS), a rare disease that principally affects the kidneys and often leads to patients requiring acute dialysis. In certain cases, sHUS can cause chronic kidney disease and death, primarily in children. Bellus said on its website that it has completed an additional pre-clinical or animal study , in which Shigamab was shown to rescue animals against a lethal dose of toxin when administered up to 48 hours post-intoxication. Bellus has received positive regulatory feedback from the FDA in relation to the clinical Phase 2 study protocol for the assessment of the efficacy and safety of Shigamab in the treatment of children suffering from sHUS is currently planning the next steps for the initiation of this clinical Phase 2 study.
Bellus acquired Shigamab through the 2013 Thallion acquisition.