Pharmaceutical firm Pfizer paid $87.5m on Monday for a minority stake in Netherlands-based biopharmaceutical company AM-Pharma, as well as the option to acquire the smaller company in future.
The equity investment was made as part of an agreement through which Pgfizer could eventually pay AM-Pharma up to $512.5m if it buys the company and launches any product resulting from the partnership.
Pfizer’s acquisition rights will be activated upon the completion of a Phase 2 trial for RecAP, AM-Pharma’s recombinant human alkaline phosphatase treatment for inflammatory diseases, centred on acute kidney injury (AKI).
No drug-based treatments have yet been approved for AKI, which is currently treated using dialysis and supportive care. Results for the Phase 2 trial are expected in late 2016.
Pfizer’s investment increased AM-Pharma’s total funding to approximately $165m since it was founded.
AM-Pharma’s last round was a $15.8m series E in September 2014 backed by pharmaceutical firm AbbVie, IdInvest Partners, which is funded by insurance company Allianz, Gilde Healthcare, BB Biotech Ventures, Inventages, Ysios Capital and investment fund Kurma Biofund.
Erik van den Berg, AM-Pharma’s CEO, said: “This agreement is a significant step for AM-Pharma, and we welcome Pfizer as a shareholder and dedicated partner. This deal not only provides good shareholder value, but provides the next step in the development of RecAP as a potential treatment for patients with acute kidney injury and other inflammatory diseases.”