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Botanix Pharmaceuticals acquired all assets primarily relating to sofpironium bromide from Fresh Tracks Therapeutics, formerly Brickell Biotech, in May 2022. In exchange, Fresh Tracks received $9m upfront, with prospective near-term regulatory milestone payouts over the following 18 months from Botanix. Future payments on profits made from sales of sofpironium bromide up to $168m were also to be made. Now, the clinical-stage pharmaceutical company disclosed on 21 July 2023 that it is to amend its Asset Purchase Agreement (APA) with Botanix Pharmaceuticals and Botanix SB.
Why it matters?
Although yet to be completed, the deal is for Fresh Tracks to let go of its rights to forthcoming event-based milestones and profits on net sales of sofpironium bromide to Botanix SB, a subsidiary of Botanix, for $8.25m.
The president and chief executive officer of Fresh Tracks had this to say on the matter: “We are pleased to reach this agreement with Botanix, which we view as a win-win deal for all parties involved.”
“After the Board’s careful evaluation, it decided that the buyout is in the best interests of the company and its stockholders. This arrangement strengthens our financial position with non-equity-dilutive capital as we continue to explore and evaluate strategic options to maximise shareholder value.”
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Sofpironium bromide is an anticholinergic agent formulated as a gel for topical application. This novel chemical entity treats excessive sweating in the underarms (axillary hyperhidrosis) by blocking sweating at the gland: binding to the receptor and blocking the sweat signal.
Under the terms of the APA Amendment, Botanix will pay $8.25m in cash in lieu of all remaining amounts potentially payable by Botanix to Fresh Tracks, $6.60m of which is payable to the company and the remaining $1.65m payable to the company’s former licensor. Botanix expects FDA approval for sofpironium bromide by Q3 2023 after successfully submitting a New Drug Application (NDA).