Pharmaxis (ASX:PXS) has made an announcement regarding the sale of its Mannitol Respiratory business to Arna Pharma.

The sale of the business to Arna Pharma is expected to conclude by the end of October 2023.

As a result of the sale, Pharmaxis expects a decrease in annual core costs.

Excluding external research costs, this will result in a reduction of more than 60% and will save the company over A$14M each year.

Malcolm McComas, the current chair, will step down effective October 3, with Kathleeen Metters, a current director, appointed by the board as chair.

Following the deal, the net exit costs are estimated to be less than A$1M allowing the company to earn product royalties from Arna Pharma.

It has also been indicated that Pharmaxis will change its name to Syntara as part of the restructuring.

Additionally, the board will be reduced in size.

Pharmaxis is a pharmaceutical manufacturing specialist known for its Mannitol Respiratory business.