Supplier News Breaks Archives
Forest Labs to acquire Furiex Pharmaceuticals
April 28th, 2014
NEW YORK and MORRISVILLE, N.C. – Continuing the recent flurry of merger and acquisition activity in the pharmaceutical sector, Forest Laboratories Inc. plans to buy drug development collaboration company Furiex Pharmaceuticals Inc. for about $1.1 billion in cash.
The companies said Monday that the acquisition greement also includes up to $360 million in in a Contingent Value Right (CVR) that may be payable based on the status of eluxadoline, Furiex's lead product, as a controlled drug following approval.
Forest also announced that it has entered into an agreement to sell Furiex's royalties on alogliptin and Priligy to Royalty Pharma for $415 million upon successful completion of the acquisition of Furiex. Forest said its acquisition of Furiex is not contingent on the agreement with Royalty Pharma.
“The acquisition of Furiex builds on our growing position in gastroenterology and helps to create a leading GI company within Forest. It is a natural extension of our GI business following our $2.9 billion acquisition of Aptalis earlier this year,” stated Brent Saunders, president and chief executive officer of Forest. “We believe eluxadoline will be very complementary to our anchor GI product Linzess and additive to our broader GI portfolio, making us more relevant to gastroenterologists and primary care physicians. With eluxadoline, we expect to have one of the broadest product offerings for the $38 billion GI disease market.”
Eluxadoline is a first-in-class, locally-acting mu opioid receptor agonist and a delta opioid receptor antagonist for treating symptoms of diarrhea-predominant irritable bowel syndrome (IBS-d). IBS-d affects approximately 28 million people in the United States and Europe.
Furiex said it's on track to submit a New Drug Application for eluxadoline by the end of the third quarter.
“Furiex has built a strong portfolio of life-improving therapies for patients, including development stage assets and royalty-bearing products. Forest’s acquisition of our company is a testament to the strength of the business we have built,” commented Fred Eshelman, founding chairman of Furiex. "I am very proud of our team for its hard work and excellent development of eluxadoline in just under four years. There is a strong business fit between Furiex and Forest, and eluxadoline is expected to contribute to Forest’s leading GI franchise.”
Forest’s planned acquisition of Furiex is expected to close in the second or third quarter of 2014, pending regulatory review and Furiex shareholder approval. Forest added that the deal is not expected to affect the timing of Actavis plc’s previously announced acquisition of Forest. Actavis has consented to Forest’s acquisition of Furiex and supports the transaction, Forest said.