San Diego’s Travere Therapeutics has inked a $445 million deal to sell part of its product portfolio for treating rare liver and kidney disorders — providing additional cash so the company can pursue new, promising therapies.
Mirum Pharmaceuticals of Foster City will acquire Travere’s bile acid replacement product line that includes FDA-approved drugs Chenodal and Cholbam. Mirum, which also specializes in rare liver diseases, will pay $210 million up front and $235 million in additional payments if sales milestones are met.
“This agreement is an important step forward in Travere’s strategy to deliver our pipeline of innovative medicines to patients living with rare diseases,” said Chief Executive Eric Dube, Ph.D. “This divestment will also strengthen our financial foundation by meaningfully extending our cash runway and allow us to maximize our growth potential.”
Cholbam, which received U.S. Food and Drug istration approval several years ago, is used to treat patients who have problems with their liver or complications resulting from the inability to absorb certain vitamins.
Chenodal is approved by the FDA for people with gallstones. It also is used to treat cerebrotendinous xanthomatosis – or CTX – under a restricted marketing designation. CTX is a rare condition that limits the liver’s ability to break down cholesterol.
Chenodal and Cholbam combined generated about $102 million in sales last year for Travere. While neither drug has regulatory exclusivity, no generic competition has popped up, according to Baird Equity Research Senior Analyst Brian Skorney.
Meanwhile, Travere’s pipeline of rare disease treatments includes some additions. One is Thiola, which has been cleared for cystinuria, a genetic disorder that causes recurring kidney stones.
Another drug, Filspari, was recently approved to treat the build-up of certain proteins that can lead to blood in the urine and loss of kidney function. Other therapies in the works include one for treating enzyme disorders that can result in growth anomalies in children.
The companies expect the transaction to close by mid-October, pending regulatory review. Mirum is expected to bring over 15 to 20 people from Travere as part of the process. Travere employs about 460 people, mostly in the U.S., according to filings with securities regulators.
“The addition of the bile acid replacement therapies from Travere will strengthen our pipeline and offer an opportunity to leverage our unique expertise in the development and commercialization of treatments in rare and under-served liver diseases,” said Chris Peetz, president and chief executive officer at Mirum, in a statement.
Travere’s shares ended trading down 76 cents at $15.11 on the Nasdaq exchange.
