Nuformix, a pharmaceutical development company targeting unmet medical needs in fibrosis and oncology via drug repurposing, is to acquire Biovara, a privately owned UK pharmaceutical development company focused on novel treatments for respiratory conditions.
Biovara’s lead asset, LipAprep, is being developed to treat lung cancer-related cough, a debilitating condition for which there are currently limited effective treatment options. LipAprep has completed phase 1 single dose clinical development and is being advanced towards a phase 2 proof-of-concept study.
The proposed acquisition would combine LipAprep with Nuformix’s NXP002 programme for idiopathic pulmonary fibrosis (IPF) and other fibrotic interstitial lung diseases, which is supported by encouraging preclinical data and Orphan Drug Designation in the US and Europe. This would create a differentiated clinical-stage respiratory drug development company with two proprietary assets targeting significant unmet medical needs.
The acquisition is envisaged as a merger of equals through a share-for-share exchange, creating a more substantial and diversified respiratory-focused pharmaceutical development business
Tim Metcalfe, Chairman of Nuformix, said: “We believe the proposed acquisition of Biovara represents an important strategic opportunity for Nuformix and its shareholders, bringing together two complementary respiratory drug development programmes to create a more substantial and diversified clinical-stage respiratory business with the potential to unlock significant shareholder value.
“This is not diversification for its own sake. We see clear alignment between the programmes, the capabilities needed to advance them and the pharmaceutical partners most likely to be interested in their potential.”
Dan Gooding, Executive Director of Nuformix, said: “What particularly interests us about LipAprep is the strength of the clinical rationale. In a controlled clinical study, aprepitant reduced 24-hour cough frequency by over 30% versus placebo after just three days at the standard antiemetic dose. For patients who may experience persistent cough over much longer periods, that is a highly encouraging early signal.
“The potential to bring two programmes, rather than one, to an overlapping group of prospective partners is commercially attractive. We believe this could make the enlarged group a more interesting development and partnering proposition while creating multiple opportunities to advance assets and generate value.”