Pharmaxis to Sell Mannitol Respiratory Business

Pharmaxis, an Australian pharmaceutical company, has announced plans to sell its mannitol respiratory business as part of a strategic restructuring. The company aims to shift its focus towards treating blood-related cancers.

Under the deal, Pharmaxis will sell its mannitol respiratory business unit, which includes the production of drugs Aridol and Bronchitol, to Arna Pharma. As part of the agreement, Pharmaxis will receive royalties from the business unit for the next eight years. This move is expected to result in a significant cost reduction of 60% for the company.

The transfer of the mannitol respiratory unit will also lead to a reduction in headcount from 70 to 25 employees, according to Pharmaxis.

To reflect its new direction, Pharmaxis will be rebranded as Syntara, positioning itself as a clinical stage drug company. The company's lead candidate, PXS-5505, has shown promising Phase 2 trial results in the treatment of myelofibrosis patients.

As part of the restructuring plan, Pharmaxis will also undergo changes in its board composition. Chair Malcolm McComas and non-executive director Neil Graham will be retiring, while current director Kathleen Metters will assume the role of chair.