Tiny Parion Sciences Seals Dry Eye Drug Deal Worth $535 Million With Biotech Giant Shire
May 1, 2017
By Alex Keown, BioSpace.com Breaking News Staff
LEXINGTON, Mass. – North Carolina-based Parion Sciences snagged a deal worth up to $535 million from Shire PLC for its experimental dry eye disease treatment, P-321.
P-321 is a Phase II epithelial sodium channel (ENaC) inhibitor being developed to address tear volume deficiency and promote ocular surface healing. The drug is believed to inhibit ENaC, which is thought to block the absorption of tears and help keep the ocular surface hydrated, according to company data. Current treatments, the company said in its statement, target ocular inflammation.
Tiny Parion is one of the companies blazing a trail in ENaC development. The company is focused on developing treatments for patients with innate mucosal surface defense deficiencies of the eye or airway using ENaC-based therapies.
Flemming Ornskov, Shire’s chief executive officer, said ophthalmics is a continued focus for Shire. He said P-321 will benefit from Shire’s “development and commercial infrastructure and expertise.”
“This is an opportunity to apply our knowledge and experience from ophthalmics and dry eye disease for further innovation in this space. If approved, P-321 would expand our eye care portfolio,” Ornskov said in a statement.
Last year Shire received Food and Drug Administration approval for Xiidra, a twice-daily eye drop for dry eye disease treatment.
Dry eye disease effects about six to 34 percent of adults globally and about 16 million people in the United States. The disease is most commonly associated with dryness and overall eye discomfort, as well as stinging, burning or fluctuating blurry vision.
Under terms of the deal, Shire will provide Parion with $40 million in upfront monies. When milestone payments and royalties are factored in, Parion stands to gain $535 million if the drug is commercialized. Specifics of the deal were not revealed in the announcement. Now, Shire will lead development of P-321, but Parion could co-fund development through additional stages in exchange for enhanced tiered double-digit royalties. In addition, Parion has the option to co-fund commercialization activities and participate in the financial outcome from those activities.
Paul Boucher, president and chief executive officer of Parion, touted Shire’s expertise in ophthalmics and said the company provides the resources to move P-321 forward.
"This collaborative license agreement enables us the opportunity to contribute and participate in P-321's success, while continuing our drive to progress Parion's pipeline of novel therapies,” he said in a statement.
P-321 is the second big ENaC program Parion Sciences has licensed over the past few years. In 2015, the company struck a deal worth up to $1.2 billion with Vertex for two experimental ENaC cystic fibrosis drugs.