Ardelyx Inc (NASDAQ:ARDX) has decided to buy out of its partnership with AstraZeneca plc (ADR) (NYSE:AZN) after their joint efforts in its lead drug, didn’t go so well.
Ardelyx will give AstraZeneca an initial $15 million and $10 million in form of research and development costs. AtraZeneca entered into the deal in 2012, a partnership where the firm agree to sign $272 million in support of the project. The treatment was tenapanor and the two biotechnology firms were working on a treatment that was aimed at removing excess sodium from the intestinal tract. The project was also working on treatments for irritable bowel malady, hyperphosphatemia and conditions brought about by a chronic kidney disease.
The project’s progress and success have been disrupted by a series of efficacy and safety issues. In the process, Ardelyx’s stock value has been affected negatively. Tenapanor failed to achieve its objective when phase ii drug trials for the treatment of type 2 diabetes and chronic kidney disease failed to produce significant results. Previous trials of the drug month prior to that had emerged successful for Dialysis patients though patients still suffered higher levels of diarrhea in contrast to the placebo’s performance.
Ardelyx still has hope in the tenapanor project. The company plans to initiate the phase iii trials for IBS as well as a second phase iib trial for hyperphosphatemia before the year ends. In another unrelated sector, the company has signed a contract to dispose of shares worth $77.8 millionbin a private company.
The proceeds from the sale will be used to speed up the production process as well as the distribution. Back on the drug development sector, the company revealed a new drug called RDX022. The drug is designed to treat high potassium levels or hyperkalemia as it is scientifically known. Ardelyx Inc (NASDAQ:ARDX) plans to commence the drug’s development process and the trials within this year. However, the firm has to receive approval from the FDA.
The company’s CEO, Mike Raab said that he hopes that the two projects will be successful. He also said they will be pivotal for the company to establish further grounds.