Verus divests gastrointestinal program to Meritage Pharma

Included in the transaction are the rights to a novel formulation of an existing molecule intended to treat an emerging allergic inflammation condition of the gastrointestinal tract.

Under the terms of the agreement, Verus is to receive an upfront payment and will retain a minority equity stake in the newly formed company. No further terms have been disclosed. Selected members of the existing Verus management team will form the management team at Meritage Pharma.

Robert Keith, president and CEO of Verus, said: “This transaction, in combination with the recent divestiture of our anaphylaxis franchise to Sciele, allows us to focus all of our efforts on the successful execution of our ongoing asthma development collaboration with AstraZeneca and the associated $280 million potential earn-out payment.”