Pharmaxis shares fall 20 pc, as NovaQuest alleges breach of funding deal

 In Australia, NewZealand, Pharmacy
Shares in Sydney biotechnology company Pharmaxis have plunged more than 20 per cent in a few hours after the company revealed that a $US20 million ($21 million) payment was at risk.

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The payment is from financier NovaQuest Capital Management, who have alleged Pharmaxis has breached its funding deal.

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The news could be the killer blow for the embattled drug developer, which is still reeling from a regulatory knockback last year that sent its main drug Bronchitol back to the laboratory bench for further clinical trials.

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Investors fled the Sydney-based biotechnology company on Tuesday, with shares down 21 per cent or 1.6¢, to 6.1¢ at 11:34am AEDT. The plunge takes Pharmaxis’s fall over the past 12 months to 58 per cent.

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The US Food and Drug Administration (FDA) rejected Bronchitol, a respiratory therapy which was designed to treat patients with cystic fibrosis, in March 2013. The company has since been developing its CF303 trial, investigating the treatment in adults with cystic fibrosis, as well as embarking on trials in children. Sydney Morning Herald – Read more…

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