Pharmaxis signs EU distribution deal for Bronchitol

Pharmaxis (ASX:PXS) signed a three-year distribution deal for the supply of its Bronchitol drug across Europe as a cystic fibrosis treatment.

The company has finalised the terms of a logistics and distribution services deal with Aravo Healthcare, a Bertelsmann company, ahead of the anticipated launch of the product in Europe in the second quarter.

Pharmaxis CEO Dr Alan Robertson said the agreement “completes the infrastructure required to make Bronchitol available across Europe.”

The product will be shipped from Arvato's healthcare distribution facility in Germany to European pharmacies and hospitals.

Roberston said Pharmaxis is in the final stages of manufacturing launch stock of Bronchitol, and has already started marketing the product to cystic fibrosis centres in the UK and Germany.

Bronchitol is a proprietary formulation of mannitol administered through an inhaler. It is designed to hydrate the lungs, allowing patients to more effectively clear mucus.

Pharmaxis was cleared to market the drug in Australia in February 2011, and expects to receive approval next month to launch in Europe.

Last week, Pharmaxis revealed it has been informed that Bronchitol has been put on the path for approval under Australia's Pharmaceutical Benefits Scheme. This marks the first time in 15 years that a new cystic fibrosis medicine has been recommended for a PBS listing.

As well as cystic fibrosis, Bronchitol is also being developed for application in treating bronchiectasis - a disease causing irreversible dilation of part of the bronchial tree - and chronic bronchitis.

Pharmaxis (ASX:PXS) shares fell 1.45% in Thursday's trading to $1.360.