A few weeks ago, I predicted that the Pharmaxis (ASX: PXS) option agreement with Boehringer Ingleheim could very well be interesting.
Well done Pharmaxis … great news!
This was a very credible and grown-up deal considering the players in the space, but also the genuine potential of a good drug candidate. Nothing shoddy about it, including the partner. Truly a great day for Australian life sciences.
I was entirely unsurprised that BI didn’t just take out the company, as it would be mostly a hassle. But this may also be an important signal to the management team and shareholders. Specifically that whatever else the company has in its pipeline, is not really that interesting. Once the champagne has been consumed and the (well-earned) hangovers have subsided, the major question for the PXS team is what next? The “crown jewels” are in someone else’s hands now, PXS can continue to do a few more distribution deals for the Bronchitol franchise, but the big task is now to show shareholders that the company is willing to critically review its portfolio and put its newly acquired financial firepower and credibility to work.
And, in my opinion the pipeline needs a lot of work.
This could be a new beginning of a great Aussie pharma company, or we could look back in 12 months from now and just be witnesses to a misused moment of luck and nothing else.
Let’s hope not.