Please ensure Javascript is enabled for purposes of website accessibility

Pfizer Participates in Funding for Biotech Startup Amplyx

By Eric Volkman – May 20, 2020 at 4:50PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The pharmaceutical major is part of the privately-held company's latest round of capital raising.

Pharmaceutical giant Pfizer (PFE 0.87%) is helping to pump money into a promising early-stage biotech company. Amplyx Pharmaceuticals, which is still privately held, announced Tuesday it received a $53 million extension to its Series C financing round. Other than Pfizer, the financing syndicate was mostly comprised of venture capital companies. It was not specified how much Pfizer contributed.

Amplyx is a clinical-stage company that concentrates on serious illnesses that attack patients with compromised immune systems -- a particularly pressing area of research given the spread of the SARS-CoV-2 coronavirus, which causes COVID-19.

A coronavirus colony.

Image source: Getty Images.

At the moment the company has two drug candidates undergoing clinical trials -- the anti-fungal medication fosmanogepix, and MAU868, which is aimed at treating transplant patients afflicted with BK, a common virus.

"The current pandemic highlights the continued need for the development of safe and effective antimicrobial agents able to address emerging threats," Amplyx said in the press release announcing the new funding. 

With the additional investment provided by Pfizer and its partners, Amplyx's Series C round now stands at $90 million. The company says it will utilize the funds to continue clinical trials of its two leading candidates.

Large pharmaceutical companies frequently invest in early-stage biotechs at various points in their development and for various reasons. Many of those promising biotechs wind up being purchased outright; in 2019, for example, pharmaceutical companies spent a whopping $195 billion on acquisitions.

Pfizer hasn't yet made any public statement about its recent involvement in Amplyx's funding. On Tuesday, Pfizer stock moved largely in sync with the equities market as a whole, dropping by slightly more than 1%. 

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Pfizer Inc. Stock Quote
Pfizer Inc.
PFE
$44.14 (0.87%) $0.38

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
326%
 
S&P 500 Returns
102%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/04/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.