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Circassia approval lifts shares

The drug developer is busy turning itself into a respiratory business
April 1, 2019

Shares in drug developer Circassia Pharmaceuticals (CIR) surged after US regulators gave its new chronic obstructive pulmonary disease (COPD) treatment, Duaklir, the green light. The drug should hit the market during the second half of 2019, and joins Circassia’s evolving portfolio of respiratory medicines as it transitions away from its allergy specialism to pursue more traditional therapy areas. Regulators have also agreed to include new clinical data in the label of Tudorza – another COPD treatment, which is already available in the US.  

IC TIP: Hold at 34p

Approval of Duaklir by the US Food and Drug Administration (FDA) has triggered a $20m (£15.2m) payment from Circassia to development partner AstraZeneca (AZN), which must be paid within the next 30 days. Meanwhile, a further $100m is due by the end of June 2019. The company says it is in discussions with third-parties "to satisfy all or part of these payments", but if financing is "not forthcoming" it will use a loan facility provided by AstraZeneca under the current agreement "to satisfy the outstanding amount".