According to numerous reports, Clinical Data, Inc. has agreed to be acquired by Forest Laboratories, Inc in a deal that is estimated to be worth at the very least $1.2 billion.
Clinical Data, of course, was recently in the news for gaining FDA approval for its depression drug Viibryd.
“We are pleased to enter into this agreement with Clinical Data,” Howard Solomon, CEO of Forest Laboratories said in a statement. “Depression is a debilitating disease that affects the daily lives of millions of patients. We believe that we are uniquely positioned to bring Viibryd to market in light of our long and successful experience of clinical development and expertise in the antidepressant market. This transaction is consistent with our strategy to acquire new products that will help offset the loss of revenues due to patent expiries.”
The agreement in this deal calls for contingent payments of as much as $6 per if Viibryd can hit these milestones:
- $1.00 if sales reach or exceed $800 million within the first five years
- $2.00 if they hit $1.1 billion within the first six years
- $3.00 if they hit $1.5 billion within the first seven years
Many industry leaders suggest that the reason for this move, along with some of the other consolidations occurring in this market, is to offset potential losses that would occur when patents expire.
Interestingly enough, Forest’s more well-known and profitable drug, Lexapro, is set to go off patent next year. The depression drug accounts for over half of the company’s sales.
Get more information at BrainPhysics.com