Allergan acquires Chase Pharma in potential $1 billion deal
pharmafile | November 23, 2016 | News story | Business Services, Manufacturing and Production, Medical Communications, Research and Development, Sales and Marketing |
Allergan announced that it has completed the acquisition of Chase Pharmaceutical Corporation in a deal worth a potential $1 billion. The deal can be broken down to a $125 million upfront payment and $875 million that will be paid on appointed regulatory and commercial milestones.
The reason for the acquisition hinged on the results from Chase’s lead Alzheimer’s dementia drug, CPC-201, in its Phase II study. The study showed that 29 out of 33 patients (88%) were able to take 40 mg of donepezil per day without experiencing dose-limiting adverse events.
The drug compound is a combination of the most commonly prescribed acetylcholinesterase inhibitor (AChEI), donepezil, and the peripherally acting cholinergic blocker, solifenacin. AChEI have been found to improve cognition in Alzheimer’s disease patients, though those on the market currently have severely limiting side-effects, including diarrhoea, nausea and vomiting. This is where Chase’s drug compound offers a serious advantage, with a percentage of patients not experiencing serious side-effects, and why Allergan have snatched at the chance to acquire the company.
“We at Chase Pharmaceuticals are passionate about developing and bringing to physicians and their patients profoundly improved Alzheimer’s disease treatments. I am very excited that Allergan has recognized the strong clinical value of our development programs and look forward to seeing Allergan apply its leading clinical development and regulatory expertise to bring these potential treatments forward for patients,” said Douglas Ingram, CEO and president of Chase Pharmaceuticals.
Allergan has already announced that it plans to advance to Phase III studies in the coming year, based on consultation with the FDA.
“Alzheimer’s disease is a neurodegenerative disease that represents a major and growing global public health problem, for which very few approved treatment options are available, and the societal cost is measured in hundreds of billions of dollars, so the need for improved treatment choices is paramount,” said David Nicholson, chief research & development officer, Allergan. “This acquisition adds a new Phase 3 ready program for Alzheimer’s disease to our CNS portfolio and builds on our commitment to develop innovative approaches to improve the lives of millions of patients suffering from this devastating illness.”
Ben Hargreaves
