Pfizer will pay $340m upfront and up to an additional $470m in milestone payments to purchase its portfolio company Therachon, providing an exit to Inserm Transfert Initiative.

Therachon, a Switzerland-based biotechnology developer focused on rare genetic disorders backed by medical research institute Inserm, yesterday agreed to an acquisition by pharmaceutical firm Pfizer for up to $810m. Pfizer will pay $340m upfront and 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, a disease that can lead to serious cardiovascular, neurological and metabolic complications. Achondroplasia affects approximately 250,000 people worldwide. TA-46 is being developed as a weekly subcutaneous injection for children and adolescents. The drug candidate has completed phase 1 trials and secured orphan drug designation from the US and EU regulators. As part of the acquisition, Therachon has established a spinout that will drive the development of apraglutide, its treatment of short bowel syndrome. Pfizer Ventures, the corporate venturing arm of Pfizer, owns a minority stake in the as-yet unnamed spinout. Therachon builds on research led by Elvire Gouze, a senior researcher at Inserm and University of Nice Sophia Antipolis. Pfizer expects Therachon to complement its existing research into rare diseases, particularly in the paediatric growth disorders field. Therachon closed a $60m series B round in August 2018 that featured Insterm’s investment arm Inserm Transfert Initiative. The round was led by pharmaceutical firm Novo Holdings and also included Pfizer Ventures and French state-owned investment bank Bpifrance. Cowen Healthcare Investments, Versant Ventures, OrbiMed and funds managed by Tekla Capital Management filled out the series B round. The spinout previously completed a $40m series A round in 2017 after obtaining a $5m extension from Bpifrance. Inserm Transfert Initiative had taken part in a $35m first close in 2015 led by OrbiMed, with participation from New Enterprise Associates and Versant.

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Thierry Heles

Thierry Heles is the editor of Global University Venturing, host of the Beyond the Breakthrough interview podcast and responsible for the monthly GUV Gazette (sign up here for free).