Allergan to acquire Naurex; rumored to be selling generics unit to Teva

Ireland-incorporated Allergan (NYSE: AGN) on Sunday revealed its intention to acquire USA-based, privately-held Naurex, amid speculation that it was also about to divest its generics business.

Under the terms of the deal , Allergan will acquire Naurex, a clinical-stage biopharmaceutical company developing transformative therapies for challenging disorders of the central nervous system, for a $560 million upfront payment net of cash acquired, $460 million of which is payable on the closing of the acquisition and $100 million of which is payable by January of 2016 (or on the closing if the closing has not occurred by such time), as well as potential R&D success-based and sales-threshold milestone payments. Allergan remains committed to de-leveraging to below 3.5x debt-to-EBITDA (earnings before interest, taxes, depreciation and amortization) by the end of the first quarter of 2016.

Will bring in Phase III and II depression drug candidates