Allergan’s executive team orchestrates a $200M buyout to beef up gastroenterology pipeline
Allergan CEO Brent Saunders has bagged the latest in a long string of new biotech buyouts. The target this time: a diabetic gastroparesis drug called relamorelin (RM-131), which just cleared a Phase IIb study and will now head straight into a pivotal trial. And they’re jumping into a field that hasn’t seen a new drug approved in more than 30 years.
Allergan $AGN is paying $200 million to complete the deal, acquiring a subsidiary of Rhythm Holding called Motus, which owns the rights to the ghrelin agonist. That comes on top of the $47 million that Allergan handed over for the option on the drug and trial support. There’s also an added bonus payment due if and when the drug achieves its first commercial sales.
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