Pharmaxis shares have soared by 45 per cent after the company sold its drug candidate for liver disease to pharmaceutical giant Boehringer Ingelheim in a deal that could be worth up to $750 million if the drug is successful.

The drug developer is yet to finish a safety study of its small molecule that inhibits an enzyme involved in inflammation of the liver, but some recently released interim data was enough for Boehringer. The company snapped up Pharmaxis's candidate with an up-front payment of $39 million and another $711 million in payments once certain sales and development milestones are reached. 

Pharmaxis chief executive Gary Phillips said the company, which had a market value of just $52 million before the share surge, would also earn a royalty in the "high single digits" on future sales.

The stock rose 7.5¢ to 24¢ on Monday, boosting the fortunes of substantial investors Allan Gray and Australian Ethical.

For more details, go to: http://www.afr.com/business/health/biotechnology/pharmaxis-shares-soar-45pc-on-750m-beohringer-ingelheim-deal-20150518-gh45b1