Allergan PLC said Tuesday that it has reached a deal to buy the
exclusive world-wide rights to two of Merck & Co.'s
experimental migraine drugs for an upfront payment of $250
million.
Merck could also receive milestone and royalty payments based on
commercialization of the two calcitonin gene-related peptide (CGRP)
receptor antagonists, which are being developed for treatment and
prevention of migraines.
CGRP has been a key focus in the hunt for new migraine
treatments in recent years. CGRP is a brain chemical that appears
to play a role in the transmission of pain, but not in other brain
functions, such as cognition or mood. Researchers have been trying
a variety of experimental drugs to stop CGRP from working by
blocking its receptors in the brain.
In 2011, Merck called off a CGRP development program after
patients showed evidence of liver toxicity. The companies noted
Tuesday that the two new drugs haven't shown evidence of toxicity
in clinical trials to date.
Dublin-based Allergan expects to begin a phase 3 study for one
of the oral drugs in 2016, while the company expects to begin a
phase 2 study for the other next year.
Allergan will pay out $125 million after it receives regulatory
clearance and $125 million next April.
Allergan has been bulking up its portfolio through a string of
deals recently.
On Monday, Allergan said it struck a deal to buy Oculeve, a
maker of experimental dry-eye disease treatments, for an upfront
payment of $125 million in cash.
That follows the Botox maker's deal last month to buy Kythera
Biopharmaceuticals Inc. and its newly approved double-chin
treatment in a $2.1 billion deal that aims to plump up its lineup
of cosmetic medicines.
For its part, Merck said the deal allows it to focus its
resources on its therapeutic areas.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
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