The Pharmaxis Ltd (ASX: PXS) share price is up today on the news it has received a substantial payment from a strategic partner.
The Pharmaxis share price reached an intraday high of 9.9 cents in late morning trade, but has since pulled back. At the time of writing, the Pharmaxis shares are up 6.8% to 9.3 cents.
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What does Pharmaxis do?
Pharmaxis is an Australian biotechnology company committed to research and drug development for diseases involving inflammation and fibrosis including cystic fibrosis, pulmonary fibrosis and liver disease.
The company currently has two respiratory products approved in international markets that are generating recurring revenue. In addition, Pharmaxis has a diversified range of products at various stages of development.
Milestone payment
Pharmaxis advised this morning that it's received a milestone payment of US$7 million ($9.2 million) from its United States licensee, Chiesi.
According to the company, the credited funds follow the recent approval by the United States Food and Drug Administration (FDA) for Bronchitol.
Bronchitol is used for the treatment of cystic fibrosis in helping a patient clear mucus from their lungs. A spray-dried form of the active ingredient, mannitol, is delivered to the lungs by a specially designed, portable inhaler. Bronchitol works by rehydrating the airway/lung surface and promoting a productive cough.
The product is also sold and marketed across Europe, Russia, and Australia.
With the first payment received, Pharmaxis is anticipating a further US$3 million from Chiesi on the shipment of Bronchitol. The United States bound delivery is scheduled for the first quarter of 2021.
Reporting a cash holding of $10 million at the end of the last September period, the company has since bulked up its coffers. Pharmaxis recently added a $5 million R&D tax incentive in October, bringing its total cash balance to $24.2 million, including the $9.2 million payment.
How has the Pharmaxis share price performed in 2020?
The Pharmaxis share price is down almost 40% over the past 12 months. Its shares reached an all-time low of 5.3 cents in March and have failed to recover from its highs recorded at the start of the year.
The height of the Pharmaxis share price reached was 11 cents in April, straight after the pandemic took the world hostage. Since then, Pharmaxis shareholders have been going on a mini-rollercoaster ride.
