Forest Labs buys Furiex for bowel drug


Forest Laboratories has agreed to buy Furiex pharmaceuticals for $1.1 billion (£650 million) in cash, with a top-up of up to $360 million contingent on approval of Furiex’s irritable bowel syndrome drug eluxadoline.

The drug will mesh quite well with Forest’s other gastrointestinal drug lines, many of which came from its acquisition of Aptalis at the beginning of the year. True to the company’s focus on innovative drugs, Forest has also said that, as soon as the deal goes through, it will sell Furiex’s royalty rights to diabetes drug alogliptin and premature ejaculation remedy Priligy (dapoxetine) to investment firm Royalty Pharma.

There is an interesting twist to the approval contingency payment, too. Because eluxadoline is an opioid receptor agonist, there is a possibility that it will be classified as a controlled substance by the US Drug Enforcement Agency (DEA). If this happens, the value of the top-up payment will go down depending on the level of restriction the DEA imposes.


Related Content

Megamerger brings Actavis into R&D race

25 February 2014 Business

news image

$25bn Forest Labs takeover will see generics giant take on patented products

Business roundup

29 March 2011 Business

news image

Industry news, April 2011

Most Read

Coated nanoparticles show Alzheimer's promise

12 September 2014 News and Analysis

news image

Gold nanoparticles functionalised with amino acid polymer inhibit the growth of amyloid fibres associated with neurodegenerat...

First flexible graphene display paves the way for folding electronics

11 September 2014 News and Analysis

news image

Team behind the bendy e-reader display hope to have a full colour graphene-based smartphone style screen within a year

Most Commented

Does life play dice?

3 September 2014 The Crucible

news image

Philip Ball wonders whether life evolved to exploit quantum phenomena, or if it’s just in our nature

The trouble with boycotts

29 August 2014 Critical Point

news image

Cutting academic ties with a censured state can do more harm than good, says Mark Peplow