Paion is expanding its activities with a new license deal, which has a significant impact on the company’s strategy: After the Aachen-based company had previously focused exclusively on the development of the new anesthetic remimazolam and this has received approval in the USA, among others, the company reports now a license deal with the La Jolla Pharmaceutical Company. Of these, Paion Giapreza (Angiotensin II) and Xerava (Eravacyclin) licensed. While Giapreza is approved by the European Commission for the treatment of refractory hypotension (low blood pressure) in adults with septic or other distributive shock, Xerava can be used in the treatment of adults with complicated abdominal infections and is also approved in the EU.
“Both products are already on the market in the US and show strong sales growth and potential,” reported Paion on Tuesday. The Aachen-based company will pay $ 22.5 million upfront to La Jolla Pharmaceutical, which will come from its cash holdings and the financing agreement with the European Investment Bank. In addition, up to $ 109.5 million in payments that are linked to milestones and double-digit tiered revenue-based license fees have been agreed. The company is examining financing measures for further projects; in addition, milestone payments and license fees from the Remimazolam licensees will flush money into the coffers of the biopharmaceutical company.