AFT Pharmaceuticals has a signed a trial for a drug that has the potential to be its most successful yet, its chief executive says. On Friday AFT Pharmaceuticals finalised an out-licensing and development agreement with US dermatology developer Timber Pharmaceuticals for the US, Canada and Mexico for its commercially undeveloped drug Pascomer.
Pascomer is a cream treatment for facial angiofibromas in tuberous sclerosis.
The disease, which presents as growths on the face, affects more than 30,000 patients in the US alone which, as a market, could potentially be worth more than US$300 million (NZ$453m) if clinical studies are successful.
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AFT was started in a garage 20 years ago by wife and husband duo Marree and Hartley Atkinson using $50,000 of startup capital. It listed on the New Zealand and Australian stock exchanges in late 2015 raising $33.2m.
Before Pascomer is brought to market clinical trials will be conducted in eight research centres in five countries, including the world-renowned Mayo Clinic in the US.
Research centres in Australia, Spain, the UK and New Zealand are also taking part in the trial.
Results are due in 2020.
Hartley Atkinson said if the trial proved successful the drug had the potential to be as significant as AFT's Maxigesic drug, a patented combination of paracetamol and ibuprofen that's sold in 15 countries and licensed in about 130.
Pascomer could slow down and prevent the development of growths with daily application, he said.
Timber will cover both trial costs and AFT costs for staff involved in the Pascomer development program.
Atkinson said the agreement with Timber was a significant and exciting opportunity.
"The deal we have struck with Timber, mitigates AFT's research and development risks, while still promising strong returns for the company if the clinical trials proceed successfully," Atkinson said.
"Facial angiofibromas are a disfiguring condition affecting patients from childhood. So, a successful Pascomer development will offer an important therapeutic option to these sufferers," Atkinson said.
Timber president Zach Rome said AFT's technology coupled with Pascomer was potentially a significant breakthrough for people with facial angiofibromas.
Dermatology Specialty Limited Partnership (DSLP) is a joint venture set up to develop Pascomer as part of the agreement.
In a series of transactions covered by the agreement, DSLP joint venture partner Tardimed, which is the majority shareholder in Timber, transferred its share to AFT giving AFT 100 per cent control of the joint venture.
AFT will receive signing and, provided development proceeds successfully, staged development and registration milestone payments in excess of US$10 million, potential sale
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