According to a MarketWatch report announcing the deal on Sunday, the deal between the two companies is definitive and will be made exclusively on cash transactions. Allergan will be required pay $460 million after the deal is finalized and another $100 million in January 2016. Undisclosed R&D and sales threshold bonuses are also included in the deal.
However, this will not include Naurex’s research division, at least for the time being, which will break as a new company and will collaborate with Allergan on its antidepressant research from equal standing.
Allergan’s chief executive Brent Saunders was optimistic about the prospects of the two companies after the deal, announcing as an opportunity to revolutionize medication in mood disorders and even drag suicide rates down.
“The acquisition of Naurex is a great fit for Allergan and a compelling and exciting investment. We expect Naurex will enhance Allergan’s mental health portfolio and build on our strategy to lead in this important therapeutic area”, he said.
These claims are bolstered by two experimental drugs which Naurex are currently testing in late clinical trial stages, named rapstinel and NRX-1074, which are meant to offer a better response to those who resists the effects of antidepressants. While this is still mostly concept – their effectiveness and potential benefits need to show in larger scale trials if the drugs were to be approved by regulators – it excites most researchers due to the fact that one of the two drugs is designed more as an anti-suicidal, meant for severe cases which cannot be contained by antidepressants.
Naurex’s CEO Dr. Norbert Riedel is also satisfied with the outcome of the deal, stating that it provides a chance for the company’s in-development drugs to be researched more thoroughly and progress faster, naming Allergan a “credible and committed” partner in antidepressant research.
The deal itself has been discussed since late 2014, with the common bridge being research in the underdeveloped area of depression. Naurex has been one of the few companies actively researching and progressing in the field, starting from successful ketamine anti-depression tests and building onto its experimental drugs from there.Several other drugs before tested by the company have also shown breakthrough effects on patients which were not responding to antidepressants, but have yet to been created in a pill form.
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