Pharmaxis shares plunge on Bronchitol funding threat
Pharmaxis has said a $US20 million payment from financier NovaQuest Capital Management is at risk following allegations that it has breached its contract, in a move that could be the killer blow for the embattled drug developer.
Embattled drug developer Pharmaxis may have received a killer blow after US financier NovaQuest Capital Management threatened to hold back a $US20 million ($21 million) payment, alleging the Sydney biotechnology company has breached its funding deal.
Pharmaxis shares fell by as much as 29 per cent during trading and closed the Tuesday session down 16 per cent to 6.5¢. The news could spell the end for the company, which is still reeling from a regulatory knockback last year that sent its main drug Bronchitol back to the laboratory bench for further clinical trials.
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Jessica Gardner is Deputy editor - News. She has previously edited the Companies and Markets section. Connect with Jessica on Twitter. Email Jessica at jgardner@afr.com
