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Pharma Tech Outlook | Saturday, March 26, 2022
The acquisition of arimoclomol is a game-changer that significantly expands the rare CNS disease development pipeline, bringing it to KemPharm's NDA stage, which will allow KemPharm to create and retain value for shareholders.
FREMONT, CA: Each rare disease affects a small population, and the market for the related medicine is, comparatively, small. Because fewer individuals share the cost of developing such medication, the cost of treatment per patient is usually considerable. KemPharm, Inc., a specialty pharmaceutical company focused on the discovery and development of novel therapies for rare Central Nervous System (CNS) diseases, came to a definitive agreement to acquire arimoclomol, an orally-delivered, first-in-class heat shock protein (HSP) amplifier being developed as a treatment for Niemann-Pick disease type C, from Orphazyme A/S (in reconstruction).
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NPC is a rare progressive neurodegenerative disease that affects children, adolescents, and adults. It is characterized by the body's inability to transport cholesterol and lipids inside cells, resulting in abnormal accumulation of these substances in various body tissues, including the brain. Arimoclomol is currently offered to NPC patients in the United States, France, and Germany through Orphazymes Early Access Programs (EAP).
NPC is a rare progressive lysosomal storage illness marked by the body's inability to transfer cholesterol and lipids within cells. It causes organs such as the brain, spleen, and liver to malfunction. NPC can range from a lethal disorder in the first few months after birth (neonatal phase) to a late-onset, chronic progressive disorder untreated until adulthood. In all patients, disease progression is irreversible, and loss of neurocognitive function negatively influences their everyday lives.
"This strategic acquisition of arimoclomol is a transformative event that significantly expands our rare CNS disease development pipeline, bringing to KemPharm an NDA-stage, revenue-generating product upon which we intend to build commercial capabilities that allow KemPharm to create and retain value for the benefit of shareholders. Moreover, the financial structure of the acquisition combined with the revenue currently being generated by arimoclomol from the early access program in France affords us the opportunity to acquire the asset in a capital efficient manner that has the potential to create positive cash flow, while incurring no shareholder dilution," says Richard Pascoe, Executive Chairman of KemPharm.
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