KemPharm Acquires Battered Orphazyme's Arimoclomol Program For $13M

KemPharm Acquires Battered Orphazyme's Arimoclomol Program For $13M
  • KemPharm Inc KMPH has agreed to acquire Orphazyme A/S's (in reconstruction) ORPHY arimoclomol for Niemann-Pick disease type C (NPC). 
  • NPC is a rare neurodegenerative disease characterized by an inability of the body to transport cholesterol and lipids inside of cells, which leads to the abnormal accumulation of these substances.
  • Arimoclomol is currently available to NPC patients in the U.S., France, and Germany under Orphazyme's Early Access Programs (EAP).
  • Related: Orphazyme Withdraws European Application For Arimoclomol, Initiates Delisting Of Its ADSs.
  • KemPharm will purchase all of the assets and operations of Orphazyme, including arimoclomol, for $12.8 million. 
  • KemPharm expects to finance the cash payment with a revolving line of credit secured by its balance sheet. 
  • As of March 31, KemPharm held cash, cash equivalents, marketable securities, and long-term investments of $119.1 million
  • In 2022, the EAP is expected to generate at least $12 million in revenue based upon enrollment in France as of March 2022. 
  • The company plans to resubmit the marketing application for arimoclomol in NPC as early as Q1 of 2023.
  • Price Action: KMPH shares closed 3.30% lower at $4.10 on Friday.

Posted In: BriefsBiotechM&ANewsPenny StocksHealth CareGeneral