KemPharm Acquires Battered Orphazyme's Arimoclomol Program For $13M

KemPharm Inc KMPH has agreed to acquire Orphazyme A/S's (in reconstruction) ORPHY arimoclomol for Niemann-Pick disease type C (NPC).
NPC is a rare neurodegenerative disease characterized by an inability of the body to transport cholesterol and lipids inside of cells, which leads to the abnormal accumulation of these substances.
Arimoclomol is currently available to NPC patients in the U.S., France, and Germany under Orphazyme's Early Access Programs (EAP).
Related: Orphazyme Withdraws European Application For Arimoclomol, Initiates Delisting Of Its ADSs.
KemPharm will purchase all of the assets and operations of Orphazyme, including arimoclomol, for $12.8 million.
KemPharm expects to finance the cash payment with a revolving line of credit secured by its balance sheet.
As of March 31, KemPharm held cash, cash equivalents, marketable securities, and long-term investments of $119.1 million.
In 2022, the EAP is expected to generate at least $12 million in revenue based upon enrollment in France as of March 2022.
The company plans to resubmit the marketing application for arimoclomol in NPC as early as Q1 of 2023.
Price Action: KMPH shares closed 3.30% lower at $4.10 on Friday.