Circassia Pharma returns drug rights to focus on diagnostics
will hand over the US commercial rights to two respiratory drugs back to to focus on respiratory diagnostics.
AstraZeneca will acquire the commercial rights to drugs Tudorza® and Duaklir® and waive loans and interest of US$149 million upon receiving both.
The AIM-listed pharmaceutical business focused on respiratory disease told investors that AstraZeneca will retain its 18.9% stake in the company as part of the original deal.
Circassia said it had carried out a strategic review of the business and two drugs and concluded that it was ‘highly unlikely’ that it would be able to refinance the loan from Astra.
Shares in Circassia were trading 29.43% higher at 22.65p during Thursday morning.
The group highlighted that its primary focus going ahead would be its Niox® respiratory diagnostic platform which it believes has the ability to drive long-term growth.
“Upon completion, this transaction will transform Circassia into a debt-free business with a strong revenue-generating business,” said Ian Johnson, Circassia's Executive Chairman.
Johnson said this would entail expanding into new territories and a commercial infrastructure that can, in the medium term, be “further leveraged through broadening its range of products.”
He added, “This fundamental change in the business will place us in a strong position to deliver improved shareholder value."
As the group marks a change of direction, Circassia said it would drop the ‘Pharma’ part of its name and will instead be known as Circassia Group going forward.
Follow News & Updates from Circassia here:
Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.