Allergan today (23/1/13) said that it would buy US based MAP Pharmaceuticals in a $958m acquisition. Allergan is purchasing MAP Pharmaceuticals in cash and has paid a 60% premium on the closing share price of MAP. Allergan expects the deal to dilute 2013 earnings by about 7 cents a share and begin to add revenue in H2 2014. The purchase follows on from a collaboration agreement Allergan and MAP made in January 2011 to co-promote Levadex in the US and Canada.
MAP Pharma is currently developing Levadex, an orally inhaled drug for the acute treatment of migraines in adults. Levadex is currently under review by the US FDA, which are set to make their decision around the 15th of April and presumably Allergan are rolling the dice that they can draw the value from a regulatory approval. Levadex is also currently being investigated for a number of other indications including paediatric migraine and cluster headaches. Allergan’s CEO David Pyott commented ‘we plan to capitalise on depth of expertise in neurology as we continue the global development of Levadex as a potential acute treatment for migraine.’
The purchase of MAP Pharmaceuticals represents another step away from Allergan only being associated with their highly successful Botox drug. Botox is currently licenced in 56 countries for the use of chronic migraine however it is more widely known as a popular wrinkle treatment. If the green light is given to Lavadex then Allergan have a good opportunity to drive the use of Botox in chronic migraine, as well as diversify their product range. With the inherent risks of inhaled products and the safety concerns that often lead to regulatory rejection, this is an acquisition which Allergan will have to hope gets a good start in the coming weeks.
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