- 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.
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