Nov 30 2017

Forest Laboratories to Acquire Furiex Pharmaceuticals #pharma #etf

#forrest pharma


Forest Laboratories to Acquire Furiex Pharmaceuticals

Today, Forest Laboratories Inc. announced that it has entered into a definitive agreement to acquire Furiex Pharmaceuticals, Inc. for up to $1.5 billion.

Under the deal, Forest Laboratories will pay $95 per share, or approximately $1.1 billion in cash, and up to $30 a share, or $360 million, in contingent value rights tied to Furiex’s lead product candidate eluxadoline for irritable bowel syndrome (IBS). Forest Laboratories also announced that it has reached an agreement to sell Furiex’s royalties on alogliptin and Priligy with Royalty Pharma AG for approximately $415 million upon successful completion of Forest’s acquisition of Furiex.

“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,” said Forest’s Chief Executive Officer and President Brent Saunders. “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 IBS (IBS-d). Furiex is on track to submit a New Drug Application (NDA) for eluxadoline to the US Food and Drug Administration (FDA) by the end of the third quarter of 2014. The drug was granted fast-track status by the FDA.

In February, Forest Laboratories announced that it has entered into an agreement with Actavis, under which Actavis will acquire the company for $25 billion. According to Forest, the acquisition of Furiex will not affect the timing of Actavis’ takeover and Actavis agreed to the Furiex acquisition bid and supports it. Earlier this year, Forest completed a $2.9 billion acquisition of Aptalis, which makes gastrointestinal and cystic fibrosis treatments.

“In partnering on this transaction, we believe Forest and Royalty Pharma have created a win-win situation,” said Royalty Pharma’s Chief Executive Officer Pablo Legorreta. “Forest will acquire a company with a very exciting GI product candidate, while Royalty Pharma will acquire the non-core passive royalty assets. Our goal is to become the M A partner of choice for pharma and biotech companies, allowing them to focus their resources on strategic assets.”

Forest said that it expects the acquisition of Furiex to close in the second or third quarter of 2014, following regulatory review and Furiex shareholder approval.

Source: Forest Laboratories Inc.

Last updated: 4/28/14; 2:25pm EST

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