Shire acquires Fibrotech for $75 million and access to FT 011 a treatment for fibrosis

Fibrotech, an Australian biopharmaceutical company developing a new class of drugs to prevent a massive health burden associated with fibrosis, has announced that it has reached an agreement with Shire plc under which Shire has agreed to purchase Fibrotech for an upfront payment of $75 Million and certain contingent payments based on the achievement of development and regulatory milestones. Shire will undertake the further development of Fibrotech's lead product FT 011, which has completed a Phase 1A study in healthy volunteers and is currently in a Phase 1B study in patients with Diabetic Nephropathy. Subject to successful completion of this trial, the first Phase II study is expected to be initiated to enroll Focal Segmental Glomerulosclerosis (FSGS) patients next year. FSGS is a rare disease that affects the kidney's filtering system causing serious fibrosis (scarring). The majority (85%) of cases are idiopathic and most of the patients progress to End Stage Renal Disease. In addition to the lead compound FT011, Shire acquires Fibrotech's library of novel molecules including another molecule, FT 061, in pre-clinical development that has a similar mode of action to FT 011. It is an oral small molecule with the potential to address both the inflammatory and pro-fibrotic components of fibrosis.