Biotech Pharmaxis has sold an anti-inflammatory drug it was developing to Germany's Boehringer Ingelheim in a deal worth up to $750 million.

The news pushed up Pharmaxis shares by 7.5 cents, or 45.45 per cent, to 24c in trading on the Australian Securities Exchange by 1.05pm (AEST).

The drug, referred to as PXS4728A, is being developed for the treatment of the liver-related condition non-alcoholic steatohepatitis (NASH).

NASH is the progressive form of non-alcoholic fatty liver disease, which is the most common liver disorder in western industrialised nations.

NASH is regarded as a major cause of cirrhosis of the liver.

The high prevalence of type 2 diabetes and obesity, which can lead to NASH and other non-alcoholic fatty liver diseases, is expected to make NASH potentially the most common cause of advanced liver conditions in coming decades.

Pharmaxis will receive an upfront payment of €27.5m in the deal with Boehringer.

For more details, go to: http://www.theaustralian.com.au/business/latest/pharmaxis-boosted-by-drug-sale/story-e6frg90f-1227358956590