Albireo receives $55M for elobixibat approval in Japan

Albireo Pharma Inc. (NASDAQ:ALBO) nearly doubled its cash reserves after Japan’s Ministry of Health, Labour and Welfare (MHLW) approved Goofice elobixibat on Friday to treat chronic constipation. The approval triggered about $55 million in payments to the company's Elobix AB subsidiary from HealthCare Royalty Partners (Stamford, Conn.) and the EA Pharma Co. Ltd. subsidiary of Eisai Co. Ltd. (Tokyo:4523). The figure includes a $45 million milestone payment from HealthCare Royalty. Albireo said the approval is the first worldwide for an inhibitor of solute carrier family 10 sodium-dependent bile acid transporter member 2 (SLC10A2; ASBT; IBAT).

EA Pharma has exclusive rights to elobixibat for gastrointestinal disorders in Japan and other Asian countries from Albireo. EA Pharma and Mochida Pharmaceutical Co. Ltd. (Tokyo:4534) will co-market the product in Japan...