SynAct Pharma harnesses the biology of melanocortin to trigger the immune system's natural healing mechanisms. The company's lead candidate, AP1189, promotes resolution of inflammation by selective activation of melanocortin receptors 1 and 3. Three phase II studies are currently underway with AP1189: a phase IIb study, EXPAND, in early severe rheumatoid arthritis (RA), a phase IIa/b study, RESOLVES, in RA patients with inadequate response to DMARDs, and a phase IIa study in membranous nephropathy.
TXP Pharma's portfolio – a valuable addition
SynAct Pharma's leading position in resolution treatment is now strengthened through the acquisition of TXP Pharmaceuticals, a Swiss privately held biotechnology company founded in 2013.
Similar to SynAct Pharma, TXP Pharma focuses on the research and development of drugs for the treatment of autoimmune and inflammatory diseases by stimulating melanocortin receptors. The company has created a platform of more than 70 melanocortin agonists that are stable and selective, with different receptor selectivities.
Lead candidate approaching clinical phase
TXP Pharma's leading project, TXP-11, is being developed for the preventive treatment of organ failure and injury associated with complex surgical operations. Preclinical toxicology studies have been completed and a Phase I study is expected to begin in 2023. TXP-11 is administered intravenously, unlike AP1189 which is administered orally.
Two other promising candidates are TXP-35 and TXP-59 which are designed for subcutaneous administration and slow release.
Related party transaction - conducted by independent committee
SynAct Pharma acquires all shares in TXP Pharma from a number of sellers, including Torbjorn Bjerke, Chairman of the Board of SynAct Pharma, CSO Thomas Jonassen, CEO Jeppe Øvlesen and COO Thomas BoesenThe purchase price amounts to SEK 136 million in fixed purchase price and a possible additional purchase price of SEK 55 million in the event of positive Phase II results for one of TXP's molecules. The fixed purchase price is paid through 2,17 million newly issued shares in SynAct Pharma.
The acquisition process is managed by an independent committee consisting of four members, with Uli Hacksell as chairman. See BioStock's interview with him and Patrik Reindeer leaves hereIn a press release, Uli Hacksell explains why he believes the acquisition is beneficial:
»By combining the development portfolio and scientific capabilities of SynAct and TXP, we strengthen SynAct's leading position in melanocortin biology-based therapies and enhance its growing development portfolio. Furthermore, we can now address the full spectrum of inflammatory and autoimmune diseases with two complementary platforms«
Strengthens leading position in inflammation resolution
Through the acquisition, SynAct Pharma has two platforms that complement each other well. This means that the company will soon have two projects in clinical development, both AP1189 and TXP-11, and two more in preclinical phase, TXP-35 and TXP-59.
AP1189 has great potential in several diseases, but the addition of TXP's melanocortin agonists provides additional opportunities in terms of, for example, indications, receptor selectivity and route of administration. The combined technologies provide SynAct Pharma with opportunities for drug development in a variety of autoimmune and inflammatory diseases. Some examples of therapeutic areas that the company is pursuing include: has mentioned are intensive care, rheumatology and ophthalmology.
Through the acquisition, Synact Pharma believes that their potential in inflammatory diseases is expanded and can become a game changer in the field.