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MERGERS & ACQUISITIONS
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Allergan acquires migraine drug maker for $958 million

The purchase adds a new range of products for the O.C. drug manufacturer

by Caitlin AdamsPublished: January 24, 2013 03:45 PM

Irvine-based Allergan, a drugs manufacturing firm well known as the maker of BOTOX, has signed an agreement with MAP Pharmaceuticals to purchase the migraine specialist for $25 per share. Under the terms of the deal, Allergan will acquire 100 percent of Map Pharmaceuticals’ shares; the total value of the acquisition is $958 million.

The Mountain View-based biopharmaceutical company is focused on the manufacture of migraine drugs. Its primary product is an oral spray, LEVADEX, for the treatment of acute migraines in adults. The U.S. Food and Drug Administration is currently reviewing the product for availability in the U.S. market.

David E.I. Pyott, Allergan’s president, CEO and board chairman, described Allergan’s focus on its areas of medical expertise and ability to provide a broad portfolio of products as one of the company’s key drivers of success. “During the past few years, Allergan has received regulatory approvals in 56 countries for BOTOX for use in the treatment of chronic migraine. As a result, thousands of patients who suffer from chronic migraine have benefited from this important treatment option.”

The acquisition will provide Allergan with new products, research and therapies in the area of neurology and migraine pain management. The relationship between the two companies began in 2011, when Allergan and MAP Pharmaceuticals signed an agreement to co-promote LEVADEX to appropriate distributors –– such as pain management specialists and neurologists –– conditional to the receipt of all necessary regulatory approvals in the U.S. and Canada. Following MAP’s submission of the appropriate filings and information, the FDA has set a response date of April 15, 2013, at which time it will approve or decline to approve LEVADEX.

Pyott said the company plans to build on its success in neurology as it continues to develop LEVADEX as a treatment for acute migraines, and use MAP’s designs and technology for drug particle and inhalation to generate new opportunities.

Timothy S. Nelson, president and CEO of MAP Pharmaceuticals, said his company is pleased that it shares similar values with Allergan, and a common vision in neuroscience that makes for a strong cultural and scientific fit for both firms. "Through our dedicated employees at MAP Pharmaceuticals, we have made tremendous progress to date with our lead product candidate, LEVADEX, enabling us to realize substantial value for our stockholders through this transaction," Nelson said. “We believe this acquisition by our partner Allergan will increase the potential for our product candidates to make a meaningful difference for patients we have worked so hard to serve."

The acquisition is expected to close late in the first quarter or during the second quarter of this year. Allergan representatives say the company will fund the purchase through cash on hand, cash equivalents and short-term borrowing.


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