Fibrotech bought by Shire for at least $81m

Melbourne-based biopharma Fibrotech has agreed to be bought out by Shire for an initial US$75 million ($80.9 million).

The deal, which requires the approval of the Foreign Investment Review Board, will also involve development and regulatory milestone payments.

Shire will take over the development of Fibrotech’s lead antifibrotic drug FT011, which is currently at the phase IB trial stage in diabetic nephropathy. A phase II trial in the rare kidney disease focal segmental glomerulosclerosis (FSGS) is expected to begin recruiting patients next year.

As part of the transaction, Shire will also acquire a molecule in preclinical development with the potential to address the inflammatory and profibrotic components of fibrosis, as well as Fibrotech’s library of other molecule candidates.

“The team at Fibrotech are very excited about this acquisition as Shire are strategically aligned with our commitment to renal and fibrotic conditions, including rare diseases - areas of high unmet medical need,” Fibrotech CEO Professor Darren Kelly said.

Shire head of R&D Phil Vickers added that the acquisition “strengthens our growing and innovative portfolio targeting renal and fibrotic diseases. There have been significant advances in the scientific understanding of fibrosis and the use of biomarkers to support clinical development - which makes now a good time to invest in these promising assets targeting a novel mechanism of action.”

Fibrotech was established in 2006 based on research from University of Melbourne’s Department of Medicine, St Vincent’s Hospital and the Bio21 Institute