Dimerix shares have doubled on a licensing deal for its kidney disease treatment

Dimerix’s kidney disease drug is currently in Phase 3 trials.

Dimerix shares more than doubled on Thursday after the biotechnology company announced a major licensing agreement for its DMX-200 drug candidate which treats a rare kidney disease.

The stock piled on more than 100 per cent in heavy trade - more than 30 times the previous day’s turnover - after the company revealed the deal which comes with an upfront payment not far shy of half of Dimerix’s market value before that announcement was made.

And the deal, with UK-based Advanz Pharma, does not even cover the massive US and China markets, which are each more than double the size of the European market according to a recent company presentation.

The licence agreement announced on Thursday hands over exclusive rights to Advanz Pharma to register and commercialise DMX-200 in the EU, UK, Switzerland, Canada Australia and New Zealand. Dimerix will be paid €6.5m ($10.8m) upfront, up to €132m in potential milestone payments, and tiered royalties in the mid-teen to 20 per cent range on net sales.

The drug candidate, which aims to treat focal segmental glomerulosclerosis (FSGS), is currently in Phase 3 clinical development - the final stage of efficacy testing - with the first analysis outcomes expected in March 2024. Dimerix chief executive Dr Nina Webster said Advanz had a proven record in developing and commercialising medicines “in areas with no approved therapies and high unmet needs’’.

“Advanz’s expertise and resources will be invaluable in supporting Dimerix to advance our shared goal of commercialising this novel treatment, and this partnership recognises the decade of work by our dedicated team, consultants, trial participants, and investigators in the developing a new therapy for patients with FSGS.”

It’s been a decent week for small biotechs on the ASX with Noxopharm also more than doubling in value after its pancreatic cancer drug candidate was granted orphan drug status by the US Food and Drug Administration. At the upper end of the market Morgan Stanley has a $334 price target on CSl, versus $249.10 now.