Actavis gains exclusive rights to buy biopahrmaceuticals maker Rhythm Health.
M2 EQUITYBITES-October 23, 2014-Actavis gains exclusive rights to buy biopahrmaceuticals maker Rhythm Health
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23 October 2014 - Ireland-based pharmaceutical major Actavis Plc (NYSE:ACT) and US biopharmaceutical company Rhythm Pharmaceuticals have entered into a partnership, pursuant of which Actavis has been granted the exclusive option to buy Rhythm's subsidiary Rhythm Health Inc, the two parties announced.
Actavis will initially pay USD40m (EUR31.6m) to the vendor and will have the right to acquire Rhythm Health and the global rights for its landmark product relamorelin. However, the agreement does not include Rhythm's other subsidiary Rhythm Metabolic Inc.
Relamorelin has already completed Phase 2 trials for the treatment of diabetic gastroparesis and chronic constipation. In 2015, a PhaseIIb trial for the treatment of diabetic gastroparesis is planned. Actavis and Rhythm intend to set up a joint committee that would control the development of the product, the joint statement said.
David Nicholson, senior vice president of global brands research and development at Actavis, commented that the option to take over Rhythm Health was evidence that the company was committed to pursuing and using new development opportunities and delivering innovative and efficient products on the market.
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