Abbott pays $190 million for Dutch firm's pain drug
ABBOTT PARK -- Abbott Laboratories added to its pain care portfolio Thursday with the acquisition of the global rights to a Dutch company's biologic drug.
Abbott said it will pay $170 million upfront, plus additional milestone payments, for a total of up to $190 million. The deal is with PanGenetics, based in Utrecht, Netherlands.
The biologic, PG110, is a humanized antibody to nerve growth factor currently in Phase I clinical trial development for the treatment of chronic pain. NGF is released at sites of tissue damage and inflammation, and plays a role in the transmission of pain signals by the central nervous system, the company said.
"The goal for treatment of chronic pain continues to be potent, long-lasting analgesia that is tolerable for patients without the potential for dependence and abuse," said Dr. John Leonard, Abbott's senior vice president for global research and development.
Current treatments for the estimated 72 million diagnosed with chronic pain in the U.S. and Europe are NSAIDs, selective Cox-2 inhibitors, opioids and other analgesics that are dosed daily and have various tolerability and safety issues, including the potential for abuse and addiction, Abbott said.
PG110 is currently being studied in a Phase I clinical trial in patients with osteoarthritis. If the Phase I trial is successful, Abbott anticipates evaluating the compound for use in treating pain associated with chronic lower back pain, cancer pain and diabetic neuropathic pain.
"We are very pleased to hand the keys of the development of our anti-NGF antibody to such an outstanding organization as Abbott and one which is fully committed to bringing breakthrough new therapies to the marketplace," said Kevin Johnson, CEO of PanGenetics.
The transaction is expected to close in the fourth quarter of 2009. Abbott would expect to incur one-time specified items upon the closing of the acquisition, primarily related to in-process research and development.
The transaction does not impact Abbott's previously issued ongoing earnings-per-share guidance for 2009, the company said.
Abbott shares were down three cents Thursday on the New York Stock Exchange to $53.23.
