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Allergan in $1.5 billion deal with AstraZeneca for Crohn’s disease treatment

US drug giant Allergan said it would pay AstraZeneca $250 million (£195 million) for the exclusive rights to a drug called MEDI2070, which is in clinical trials.

Allergan could hand over another $1.27 billion to Astra, which says the drug falls outside the three main therapy areas targeted by its research arm MedImmune — respiratory, cardiovascular and metabolic.

Allergan, which is headquartered in Dublin, was in talks to merge with Pfizer last year. The deal would have created a $160 billion drug giant but fell apart amid political anger that the deal was largely designed to cut taxes — a so-called “tax inversion” merger.

Shares in AstraZeneca, itself the subject of a hostile bid from Pfizer in 2014, moved up 58p to 5,062p.

Crohn’s is an inflammation of the digestive system, causing abdominal pain and fatigue, among other serious symptoms.

This is the latest bolt-on deal for Allergan since the collapse of the Pfizer tie-up. Last month Allergan struck a deal to buy liver disease specialist Tobira Therapeutics for $1.7 billion.

ConvaTec, the medical technology firm that makes ostomy and wound care products, plans to raise $1.8 billion through a float in London this month or next. Former GlaxoSmithKline chairman and Vodafone boss Sir Christopher Gent will become chairman after listing.

The proceeds of the sale will be used to pay down debt and enable existing investors to sell their stock, ConvaTec said.

ConvaTec shareholders include Nordic Capital and Avista Capital.

Find out more on Crohn’s disease therapeutics and treatment at Market Reports Center

(Source: standard, UK)