Under an asset purchase agreement that followed an auction process, Spanish company Grifols will pay Aradigm $3.24m (€2.99m) to acquire all of its assets and IP, which include three formulations of ciprofloxacin, an antibiotic against respiratory diseases.
Grifols will also waive a $32m debt, while the bankrupt company will be entitled to milestone payments upon regulatory approval of any Aradigm product, as well as royalties of 25%.
Aradigm’s formulations of ciprofloxacin are intended to treat patients with chronic lung infection and non-cystic fibrosis bronchiectasis, a chronic and rare disease characterized by abnormal dilatation of the lungs. Drug products containing ciprofloxacin are marketed in oral and injectable formulations.
However, Apulmic, the company’s inhaled formulation of the antibiotic, failed to receive approval from the US Food and Drug Administration (FDA). The agency rejected the company’s application in 2018, suggesting that the company initiate a two-year Phase III clinical trial before it submits another application.
Grifols had been one of the main supporters of the investigational drug, with the two companies having previously signed a licensing agreement on Aradigm’s development project, which saw Grifols covering development and clinical expenses worth up to $65m.