ARTICLE | Company News

Forest to acquire Furiex

April 29, 2014 12:30 AM UTC

Forest Laboratories Inc. (NYSE:FRX) will acquire Furiex Pharmaceuticals Inc. (NASDAQ:FURX) for $95 per share in cash, or about $1.1 billion, plus a contingent value right worth up to $30 per share, or up to $360 million, tied to approval and scheduling by the U.S. Drug Enforcement Agency of Furiex's eluxadoline. Next quarter, Furiex plans to submit an NDA for the locally acting mu opioid receptor agonist and delta opioid receptor antagonist to treat diarrhea-predominant irritable bowel syndrome (IBS-D). The $95 up front price is a 19% premium to Furiex's close of $80.15 on Friday, before the deal was announced (see BioCentury, Feb. 10).

Forest said eluxadoline will complement its gastrointestinal portfolio, which includes Linzess linaclotide. Forest and Ironwood Pharmaceuticals Inc. (NASDAQ:IRWD) market the drug in the U.S. to treat irritable bowel syndrome with constipation (IBS-C) and chronic idiopathic constipation (CIC). Forest has U.S. rights to Linzess from Ironwood under a 2007 deal. ...