Pharmaceutical research company Pharmaxis (ASX:PXS) has triggered a €10 million payment after dosing its first patient in a Boehringer Ingelheim clinical trial.
The trial is up to its second phase and is testing a drug to treat patients with diabetic retinopathy, a complication of diabetes and a leading cause of blindness in diabetic adults.
The drug was acquired by the German pharmaceutical research company in 2015 with an upfront payment of $41 million, to initially study chronic non-alcoholic fatty liver disease,
Pharmaxis CEO Gary Phillips said the payment marks the expansion of Boehringer Ingelheim’s development plan into the treatment of the two diseases related to diabetic complications.
He said that if the trial reaches all milestones in the development plan, it would attract the potential of approximately $625 million in payments to Pharmaxis.
Shares in Pharmaxis (ASX:PXS) are trading 5.66 per cent higher to $0.28.