Amryt Pharma reverses onto AIM to advance orphan drug strategy

Speciality drug developer Amryt Pharma has completed its flotation via the reverse takeover of AIM-listed Fastnet, raising £10m of new cash in the process and acquiring two operating companies.

As part of the float, Amryt acquired drug German drug development and manufacturing company Birken and Swiss-US biotech SomPharmaceuticals, both of which are focused on potential drugs for rare, or 'orphan', conditions.

Shore Capital is the company's nominated adviser and joint broker, with Dublin-based Davy joint broker, while Stifel acted as co-lead manager on the fundraising.

Amryt, which completed an eight-for-one share consolidation ahead of the float, said the placing proceeds to accelerate the development of Birken's Episalvan, a treatment for epidermolysis bullosa (EB), a rare genetic skin disorder and orphan condition that typically affects young children and for which there is currently no approved therapy.

Episalvan, which is already approved in Europe as a treatment in adults for accelerated healing of partial thickness wounds following three successful phase III studies, has been awarded Orphan Drug Designation in the US and EU for EB after successfully completing a Phase IIa study in ten EB patients.

Chief executive Joe Wiley, a neurologist-turned-private equity man is backed by an experienced executive and non-executive board, said Amryt's strategy was to build "a portfolio of differentiated medicines, in therapeutic areas where there is a large unmet medical need and which offer significant commercial potential".

Wiley intends to use the new funds to progress a Phase III clinical trial of Episalvan in the second half of the year with a view to obtaining a label extension to include approval for the treatment of EB in Europe and the US. Directors estimate the global EB market is worth roughly $1.5bn per year.

Birken is already generating revenue from sales of its Imlan range of derma-cosmetics, which contain the same active ingredient as Episalvan but are focused on alleviating symptoms associated with dry and irritated skin such as eczema, psoriasis, atopic dermatitis, as well as treating damaged skin barriers and allergy prone skins.

Further cash will be required to enable the group to exploit its other assets, the admission document also said, notably Episalvan for other wound types, together with Som's pre-clinical assets focused on Acromegaly and Cushing’s disease.

Shares in Amryt reached 25p on Tuesday, up more than 4% from the 24p placing price.