Sun Pharma unit poised to buy Canadian biotech Antibe

A subsidiary of Sun Pharma has reached an agreement to buy the assets of Canada's Antibe Therapeutics, a developer of drugs for pain and inflammation that fell into receivership last year.

The transaction would see Antibe taken over by Taro Pharmaceutical – which merged with the Sun Pharma unit last year – but is subject to approval by the Ontario Superior Court of Justice, according to a financial filing. The all-cash deal is expected to close by 7th March, but the value won't be disclosed until after completion, due to Canada's receivership rules.

Antibe has been subject to a cease trade order under Ontario's securities legislation since July '24, after failing to file audited financial statements for the year ending 31st March 2024. The Toronto-based company struggled to secure backing from investors to keep the business operating as normal after the FDA placed a clinical hold on its lead drug otenaproxesul, blocking the start of a planned phase 2 trial.

Also complicating matters last year was a dispute with Shanghai biotech Nuance Pharma over a licensing agreement for otenaproxesul in the Greater China region, which resulted in an order for Antibe to refund a $20 million upfront fee and pay interest and costs of around $4 million.

According to Antibe's most recent corporate update from 2024, otenaproxesul is a novel drug that pairs an anti-inflammatory hydrogen sulphide-releasing molecule with naproxen to create a better-tolerated alternative to current nonsteroidal anti-inflammatory drugs (NSAIDs) and opioids for acute pain.

The drug is designed to prevent the gastrointestinal toxicity encountered with NSAIDs and avoid issues like dependency that can occur with opioids. Antibe's plan was to develop the drug for acute pain indications – starting with abdominoplasty – after seeing a liver safety signal with chronic dosing in osteoarthritis pain, whilst also exploring novel formulations to overcome the toxicity issue.

Meanwhile, its pipeline also includes other drugs based on its hydrogen sulphide-releasing platform, including ATB-352 for an undisclosed specialised pain indication and early-stage research programmes for inflammatory bowel disease.

It's not entirely clear what programmes will be included in the deal if Taro takes control of Antibe, as in the financial filing the company says its offer excludes some "assets and liabilities" that will be transferred to a residual Antibe company.