Advertise With UsAdvertise on our extensive network of industry websites and newsletters.
Get the PBR newsletterSign up to our free email to get all the latest PBR
news.Avanir Pharmaceuticals has entered into a definitive agreement to acquire Alamo Pharmaceuticals, a privately held specialty pharmaceutical company headquartered in California.
Subscribe to our email newsletter
Alamo's sales force is currently marketing FazaClo (clozapine, USP), the only orally-disintegrating formulation of clozapine for the management of severely ill schizophrenic patients who fail to respond adequately to standard schizophrenic drug treatments. FazaClo is also indicated for reducing the risk of suicidal behavior in patients with schizophrenic or schizoaffective disorder.
Immediately upon the close of the transaction, Alamo's sales force will continue to promote FazaClo and will begin market development activities focused on increasing the awareness of involuntary emotional expression disorder (IEED), an indication for which Avanir's Neurodex is currently seeking FDA approval.
The upfront acquisition cost of approximately $29 million (excluding transaction costs) consists of approximately $4 million in cash and approximately $25 million in notes. In addition, if certain sales milestones are achieved, Avanir will be required to pay up to an additional $40 million.
“FazaClo is an excellent strategic fit for Avanir and acquiring Alamo is an important step forward as we move towards becoming an integrated pharmaceutical company,” commented Eric Brandt, president and CEO of Avanir. “In addition to the attractiveness and potential of FazaClo, the combined organizational capabilities provide a stronger platform for acquiring/licensing other CNS products.”
Closing is subject to the assumption of debt by the principal shareholder and certain other provisions.