Travere Therapeutics Offloads Bile Acid Product Portfolio: Says Divestment Strengthens Financial Foundation
Travere Therapeutics Inc (NASDAQ: TVTX) has agreed to sell its bile acid product portfolio that, which includes Cholbam (cholic acid) and Chenodal (chenodiol), two medications, to Mirum Pharmaceuticals Inc (NASDAQ: MIRM).
Mirum will purchase Travere's bile acid product portfolio for up to $445 million, consisting of $210 million upfront and $235 million in potential sales-based milestone payments.
Mirum will acquire Travere's rights to Cholbam, indicated for bile acid synthesis disorders due to single enzyme deficiencies and adjunctive treatment of peroxisomal disorders in patients who show signs or symptoms of liver disease, and Chenodal, indicated for radiolucent stones in the gallbladder, which is also under Phase 3 clinical evaluation for cerebrotendinous xanthomatosis (CTX).
The transaction is expected to close in Q3 of 2023.
Mirum has secured $210 million in funding from a syndicate of existing investors to finance the upfront payment for the acquisition.
In Q1 FY23, Travere's bile acid product portfolio generated sales of $26.11 million.
The deal expands Mirum's footprint in rare liver disease with two commercial products and a near-term Phase 3 label expansion opportunity.
The transaction advances Travere's strategy to deliver new treatment standards from its pipeline for rare diseases, strengthening its financial foundation.
Price Action: MIRM stock is up 3.85% at $27.26, and TVTX shares are down 0.13% at $15.29 on the last check Monday.
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