By Chris Wack
Mirum Pharmaceuticals announced on Monday its acquisition of Travere’s bile acid product portfolio, which includes Cholbam cholic acid and Chenodal chenodiol. These two medications address rare diseases in high-need settings.
Mirum shares were halted at $26.25 in premarket trade, while Travere shares saw a 6% increase to $16.17 in premarket trading.
Terms of the Agreement
According to the definitive agreement, Mirum will purchase Travere’s bile acid product portfolio for a total of $445 million. This amount includes an upfront payment of $210 million and the possibility of an additional $235 million in sales-based milestone payments.
Mirum will gain the rights to Cholbam, an effective treatment for bile acid synthesis disorders caused by single enzyme deficiencies. It is also indicated as an adjunctive treatment for peroxisomal disorders in patients exhibiting signs or symptoms of liver disease. Additionally, Mirum will acquire the rights to Chenodal, which is currently undergoing Phase 3 clinical evaluation for cerebrotendinous xanthomatosis. Chenodal is used to treat radiolucent stones in the gallbladder.
Funding and Financials
In order to secure the upfront payment for the acquisition, Mirum has obtained $210 million in funding from a syndicate of existing investors, led by Frazier Life Sciences and other stockholders, as well as new investors.
Travere will receive an upfront payment of $210 million and may be eligible for up to $235 million in sales-based milestone payments based on specified annual net sales thresholds ranging from $125 million to $500 million. As part of the agreement, Travere will also provide certain transitional services.
Timeline and Conclusion
The transaction is expected to be finalized in the third quarter of 2023.