Allergan Rebounds from Pfizer Breakup with Alzheimer’s Deal

Hours after its $160 billion Pfizer deal fell apart, Allergan completed a licensing deal with U.K.-based Heptares Therapeutics.

The deal, worth a potential $3.3 billion, gives Allergan global rights to Heptares' Alzheimer’s and neurological disorders portfolio.

Allergan will pay $125 million up front to Heptares (owned by Japan’s Sosei Group Corp.) plus $665 million in milestone payments for the successful completion of clinical trials. An additional $2.5 billion in milestones, plus royalties, depends on commercial success of the portfolio. Allergan has also agreed to invest $50 million in a joint R&D program to advance several drugs to mid-stage human testing.

In regards to the dead Pfizer deal, Pfizer CEO Ian Read released a brief press release, in which he confirmed, "We maintain the financial strength and flexibility to pursue attractive business development and other shareholder friendly capital allocation opportunities.”

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