Infinity regains global rights to PI3K, FAAH; equity investment by Purdue

USA-based Infinity Pharmaceuticals (Nasdaq: INFI) says it has restructured its strategic alliance with Swiss privately-held Mundipharma International and Purdue Pharmaceutical Products by mutual agreement.

With this restructuring, Infinity regains worldwide rights for its phosphoinositide-3-kinase (PI3K) program, its fatty acid amide hydrolase (FAAH) program and its early discovery programs. IPI-145, the company’s potent, oral inhibitor of PI3K-delta and -gamma, is currently progressing in a Phase 1 trial in patients with advanced hematologic malignancies. Infinity rose 11.6% to $16.39 by close of trading on Wednesday, when the announcement was made.

Infinity also entered into a stock purchase agreement with Purdue Pharma under which Infinity will issue and sell 1,896,552 shares of its common stock, at a price of $14.50 per share, for aggregate proceeds to Infinity of $27.5 million. Infinity will also issue 3,520,013 shares of Infinity common stock, at the same price per share, to repay the principal and accrued interest outstanding under the $50 million line of credit made available by Purdue.