Allergan plc announced acquisition of Chase Pharmaceuticals Corporation, a clinical-stage biopharmaceutical company focused on the development of improved treatments for neurodegenerative disorders including Alzheimer’s disease (AD).
Financials of the deal –
Allergan acquired Chase for an upfront payment of $125 million (subject to certain adjustments) and additional potential regulatory and sales milestone payments related to Chase’s lead compound, CPC-201, and certain backup compounds.
Why this deal?
Chase’s lead compound, CPC-201, is a patent-protected combination of the most commonly prescribed acetylcholinesterase inhibitor (AChEI), donepezil, and the peripherally acting cholinergic blocker, solifenacin. AChEIs have been shown to improve cognition in Alzheimer’s disease patients. Currently approved AChEIs are only modestly effective due to dose-limiting side effects, including diarrhea, nausea and vomiting.
In Phase 2 clinical trials, 29 out of 33 patients (88%) reached 40 mg/day of donepezil (maximum dose allowed), without experiencing dose-limiting adverse events. This median donepezil dose did not change significantly during three months of maintenance treatment. Chase’s next-generation formulations offer the possibility of greater and more tolerable dosing, and may provide the potential for significantly improved cognition and function in Alzheimer’s disease patients.
Chase Pharmaceuticals recently completed an End of Phase 2 meeting with the Food and Drug Administration (FDA). Based on feedback from the FDA, Allergan intends to advance CPC-201 into a single Phase 3 registration study in 2017.
With this deal Indian Drug Maker – Cipla (its British subsidiary) able to divest its 16.7% stake in US-based Chase Pharmaceuticals Corp. to Allergan plc, following Allergan’s acquisition of Chase Pharma.
Cipla’s UK arm had acquired the stake in Chase Pharma in May 2014 through a syndicated venture investment, the company said in a press release.