Allergan Acquires Chase Pharma, Expands CNS Portfolio
Zacks Investment Research | Nov 23, 2016 07:59AM ET
Allergan plc (NYSE:AGN) announced that it has acquired Chase Pharmaceuticals Corporation, a clinical-stage biopharmaceutical company that focuses on the development of treatments for Alzheimer's disease.
As per the terms of the agreement, Allergan provided an upfront payment of $125 million and is eligible to receive additional potential regulatory and sales milestone payments related to Chase's lead candidate, CPC-201.
CPC-201, a combination of Aricept (donepezil) and solifenacin, is anticipated to enter a phase III study in 2017, based on feedback from the FDA from the recently completed end of phase II meeting.
We are encouraged by the company’s efforts in expanding its CNS portfolio. Per data provided by Allergan in its press release, an estimated 45 million people are living with dementia across the world. Alzheimer’s disease accounts for 60% to 70% of dementia cases.
The market represents huge commercial potential and a successfully developed product could generate billions of dollars in sales once launched. We note that AstraZeneca PLC (NYSE:AZN) , in collaboration with Eli Lilly and Company (NYSE:LLY) is currently evaluating their experimental Alzheimer’s disease treatment candidate, AZD3293, in a phase III study. AZD3293 has a fast track status in the U.S.
Meanwhile, in a separate press release, Allergan announced that its XEN Glaucoma Treatment System, comprising XEN45 gel stent and XEN injector, has received FDA clearance. It is indicated for the management of refractory glaucomas, where previous surgical treatment has failed, or in patients with primary open angle glaucoma, and pseudoexfoliative or pigmentary glaucoma with open angles that are unresponsive to maximum tolerated medical therapy.
The company anticipates launching the XEN Glaucoma Treatment System in the U.S. early next year.
We note that XEN enjoys the CE mark in the EU and is indicated for the reduction of intraocular pressure in patients with primary open-angle glaucoma who have failed previous medical treatments.
According to information provided by the company in its press release, 60.5 million people were living with glaucoma in 2010. Moreover, the company expects the number of people suffering from glaucoma to increase to nearly 80 million by 2020 due to the growing aged population.
ALLERGAN PLC Price
Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.