Boston, MA 05\/01\/2014 (wallstreetpr) –\u00a0Pharma industry is going through consolidation about their core business and Forest Laboratories, Inc. (NYSE:FRX) <\/b>is of no exception that enters into an agreement to acquire Furiex for its gastrointestinal (GI) business.<\/p>\n
Deal agreement <\/b><\/p>\n
Forest Laboratories, Inc. (NYSE:FRX) will acquire Furiex for $125 per share (~ $1.5 billion), including cash and Contingent Value Right (CVR) for its pipeline products. It includes an aggregate of $95 per share (~ $1.1 billion) in cash, up to $30 per share (~$360 million) as CVR based on the approval status of Furiex\u2019s lead product eluxadoline. Forest plans to close the deal by 3Q2014 based on the regulatory review and the approval of Furiex shareholders.<\/p>\n
At the same time, Forest Laboratories, Inc. (NYSE:FRX) will divest Furiex\u2019s on alogliptin and Priligy (non-core assets) to Royalty Pharma for ~$415 million. The agreement depends on the completion of Forest and Furiex deal as Forest wants to keep the core GI assets and sell non-core GI assets to Royalty Pharma.<\/p>\n
Benefit over acquisition<\/b><\/p>\n
Forest Laboratories, Inc. (NYSE:FRX) intends to strengthen the growing gastroenterology business that will help to create the drug maker as a leading GI Company. Recently, Forest acquired Aptalis for $2.9 billion to expand GI business and the acquisition of Furiex will further provide an extension to the existing business and improve the GI franchise portfolio to serve the $38 billion GI disease market.<\/p>\n
Furiex\u2019s eluxadoline is a Phase III trial candidate used to treat diarrhea induced irritable bowel syndrome (IBS-d). IBS-d usually affects ~28 million people in Europe and the U.S. and unmet need are still high due to the availability of inefficient drugs. So, the treatment market is looking for new drugs like eluxadoline to address patient’s need. Eluxadoline has successful trial results regarding its efficacy and safety against IBS-d. Furiex will submit a New Drug Application (NDA) for eluxadoline by 3Q2014 that will help Forest Laboratories, Inc. (NYSE:FRX) to enter price sensitive market like developing countries.<\/p>\n","protected":false},"excerpt":{"rendered":"
Boston, MA 05\/01\/2014 (wallstreetpr) –\u00a0Pharma industry is going through consolidation about their core business and Forest Laboratories, Inc. (NYSE:FRX) is of no exception that enters […]<\/p>\n","protected":false},"author":13,"featured_media":20875,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[2236],"tags":[4320,4321],"stock_ticker":[],"class_list":["post-20874","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-forest-laboratories-inc-nysefrx","tag-nysefrx","entry"],"acf":[],"yoast_head":"\n