Therachon, which had raised $100m from investors including Pfizer Ventures and Novo, has agreed to be acquired by Pfizer in a deal that could potentially reach $810m.
Pharmaceutical firm Pfizer agreed yesterday to acquire portfolio company Therachon, a Switzerland-based developer of treatments for rare genetic disorders, in a deal sized at $340m upfront.
The upfront payment could be swelled by up to $470m in additional milestone payments related to the development of Therachon’s lead asset, TA-46, a treatment for a bone growth disorder called achondroplasia that causes disproportionate dwarfism.
Founded in 2014, Therachon is developing therapies for rare genetic diseases such as achondroplasia, which affects approximately 250,000 people worldwide and which can lead to serious cardiovascular, neurological and metabolic complications.
TA-46 is being developed as a weekly subcutaneous injection for children and adolescents. It has completed phase 1 trials and secured orphan drug designation from US and European Union regulators.
The transaction will involve Therachon establishing a spinoff that will drive the development of apraglutide, drug candidate for short bowel syndrome. Pfizer’s corporate venturing arm, Pfizer Ventures, will own a minority stake in the as-yet unnamed company.
The therapies build on research led by Elvire Gouze, a senior researcher at medical research institute Inserm Inserm and University of Nice Sophia Antipolis. Pfizer expects Therachon to complement its existing research into rare diseases, particularly in paediatric growth disorders.
Therachon closed a $60m series B round in August 2018 that was led by pharmaceutical firm Novo and backed by Pfizer Ventures and Insterm’s invesment arm, Inserm Transfert Initiative, as well as BPIfrance, Cowen Healthcare Investments, Versant Ventures, OrbiMed and funds managed by Tekla Capital Management.
The company completed its $40m series A round in 2017 after adding a $5m extension from BPIfrance to a $35m first close led by OrbiMed that included Inserm Transfert Initiative, Versant Ventures and New Enterprise Associates, in 2015.
The original version of this article appeared on our sister site, Global University Venturing.