FerroKin also has the potential of receiving post-closing milestone payments of up to $225 million, depending upon the achievement of certain clinical development, regulatory and net sales targets. Through the acquisition, Shire will bolster its hematology business by gaining FerroKin’s iron chelator FBS0701, with global rights, in a global market currently worth over $900 million.
"An important factor for FerroKin BioSciences in agreeing to this transaction was Shire's drive, capability and vision to bring new products to the hematology market that promise to raise the standard of care for patients. In Shire's hands, FBS0701 has greater potential to fulfill that promise," said Dr. Hugh Young Rienhoff, founder and CEO, FerroKin.
FBS0701 is a once-daily oral capsule in development for the treatment of iron overload due to chronic blood transfusions in adults and children and has recieved FBS0701 has received Orphan Product designation from both the FDA and EMA. The compound is in several phase II studies and Shire is planning more in an effort to demonstrate clinical efficacy and an attractive safety profile relative to currently approved chelating agents. Initial global filings are planned for indications for Myelodysplastic Syndrome and hemoglobinopathies.
"There remains a significant unmet need for a once-a-day, oral iron chelator in a convenient dosage form for the treatment of transfusional iron overload with a better safety profile than currently available treatments,” said Ross Murdoch, senior vice president, speciality pharmaceuticals, hematology, Shire. “We believe FBS0701 has the potential to meet that need. We hope to use our expertise in hematology coupled with our proven ability to progress products through the development pipeline to bring FBS0701 to the global marketplace. This acquisition marks an important step for Shire in building a business that serves the growing needs of specialty hematologists and their patients."
The closing of the acquisition is subject to customary conditions.