Shares in Amryt, the Dublin-listed pharmaceutical company focused on developing treatments for rare or "orphan" diseases, surged as much as 18 per cent on Monday after it reached a deal to sell a treatment for a cholesterol disorder that can lead to heart attacks in childhood.
The company has secured exclusive rights to market Massachusetts-based Aegerion Pharmaceuticals's drug called Lojuxta, which is used to treat a disorder that impairs the body's ability to remove low-density lipoprotein (LDL) – or "bad" cholesterol – from the blood, across the European Union, the Middle East and North Africa.
Industry sources said the drug has annualised sales of about €8 million in these regions and that typically such licence agreements result in the holder of the licence receiving about 80 per cent of the revenue.
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The disease “typically results in extremely high blood LDL cholesterol levels leading to aggressive and premature narrowing and blocking of arterial blood vessels manifesting as cardiovascular disease,” Amryt said. “If left untreated, heart attack or sudden death may occur in childhood or early adulthood.”
Amryt’s shares were up 12.1 per cent at 10.50am, giving it a market value of €38.5 million.
"The licence agreement will add to the company's growing portfolio of orphan products and is expected to be immediately cash generative for Amryt," said Davy analyst Declan Morrissey in a note on Monday.
The licence agreement has an initial term until 2024, but has an option to be extended after that.
Amryt was subject to a reverse takeover by former oil and gas company Fastnet Equity earlier this year. Prior to the deal, the energy exploration assets were spun off into a separate standalone business. Amryt went on to raise £10 million (€11.9 million) and trading under the new name began on the Dublin and London junior markets in April.
