Allergan chief snaps up a rival biotech for $195M in cash, plus. Deal beefs up the aesthetics pipeline

Just after the start of the year, the crew of ex-Allergan execs that launched Bonti raised more than $15 million to back their development of a rival botulinum neurotoxin dubbed EB-001 for therapeutic and aesthetic uses.

And Allergan $AGN wants it.

Mike Jarpe

The biopharma company has wrapped a deal to buy Bonti for $195 million upfront, marking a nice payback for the founders and investors, who had gathered a bit more than $36 million for the venture. There are milestones, but no one spelled it out in the release out Friday morning.

If EB-001 sounds like Botox, that’s no coincidence. The executive crew at Bonti has a considerable amount of experience for drugs that can smooth over wrinkles. The Newport Beach, CA-based biotech has been targeting its use for pain, channeling some of its funds to a mid-stage trial testing EB-001 as an opioid alternative. Bonti had touted their lead program as a fast-acting alternative to Botox.

Co-founder Mike Jarpe spent 4 years at Allergan before jumping ship for Bonti, leaving his job as vice president of biologics development.

Allergan has plenty of competition remaining, though. Revance $RVNC has claimed victory in a head-to-head Phase III with its rival. And the biotech allied with Mylan on building a biosimilar that could be used to carve away Allergan’s multibillion-dollar market for the drug.

Revance shares are down 13% today on the news.

Brent Saunders

“The acquisition of Bonti is a strategic investment for the future of our medical aesthetics business and has the potential to enhance our best-in-class medical aesthetics pipeline,” said Allergen CEO Brent Saunders. “With the medical aesthetics market vastly expanding, a fast-acting neurotoxin with a 2 to 4-week duration will be an attractive option for consumers, particularly those who are considering a Medical Aesthetics treatment for the first time.”

The best place to read Endpoints News? In your inbox.

Comprehensive daily news report for those who discover, develop, and market drugs. Join 51,200+ biopharma pros who read Endpoints News by email every day.

Free Subscription

VP Oncology Biology
Skyhawk Therapeutics Waltham, MA
Associate Director CMC
Elektroki Boston, MA
Director Process Development
Elektroki Boston, MA
Research Scientist - Immunology
Recursion Pharmaceuticals Salt Lake City, UT

Visit Endpoints Careers ->