As per the terms of the agreement announced in July, Travere Therapeutics remains entitled to receive potential milestone payments based on sales, with a total potential value of up to $235m
Mirum Pharmaceuticals wraps up acquisition of Travere Therapeutics’ bile acid product portfolio. (Credit: paihub from Pixabay)
US-based Mirum Pharmaceuticals has completed the previously announced acquisition of Travere Therapeutics’ bile acid product portfolio that includes Cholbam (cholic acid) and Chenodal (chenodiol) for an upfront payment of $210m.
As per the terms of the asset purchase agreement, announced in July 2023, Travere Therapeutics remains eligible to get potential sales-based milestone payments totalling up to $235m.
Cholbam is a bile acid indicated in the US to treat bile acid synthesis disorders and as an adjunctive treatment of peroxisomal disorders.
Chenodal is approved by the US Food and Drug Administration (FDA) for the treatment of patients with radiolucent stones in the gallbladder.
It is a synthetic oral form of chenodeoxycholic acid (CDCA) and is synthesised from cholesterol in the liver.
Chenodal is also undergoing Phase 3 clinical assessment for cerebrotendinous xanthomatosis (CTX).
The acquisition of the bile acid products is expected to expand Mirum Pharmaceuticals’ position in the rare liver disease sector. The biopharmaceutical firm has now rights and assets of two additional commercial products and a near-term Phase 3 label expansion option.
According to Mirum Pharmaceuticals, the deal also advances Travere Therapeutics’ plans to provide new treatment standards from its rare diseases medicines pipeline and bolster its financial foundation.
The completion of the deal was subject to the meeting of customary closing conditions, including the expiration of the waiting period under the Hart-Scott-Rodino (HSR) Antitrust Improvements Act of 1976.
Travere Therapeutics will provide certain transitory services to Mirum Pharmaceuticals in connection with the closing.
Mirum Pharmaceuticals also announced raising $210m in funding from a syndicate of existing investors led by Frazier Life Sciences, other existing stockholders, and new investors to support the deal.