Abbott to acquire PanGenetics' novel investigational biologic for chronic pain for up to $190 million

US health care major Abbott says it has signed a definitive agreement to acquire the global rights to Dutch firm PanGenetics BV's early-stage PG110 fully-humanized antibody to Nerve Growth Factor (NGF), aiming to expand the company's pain care portfolio and leveraging its expertise in biologics.

The agreement includes an upfront $170 million plus additional milestone payments, for a total of up to $190 million. The transaction, subject to customary closing conditions and regulatory approvals, is expected to complete before year-end. Abbott expects to incur one-time charges, primarily related to in-process R&D. This transaction does not impact Abbott's previously-issued ongoing earnings-per-share guidance for 2009.

"The goal for treatment of chronic pain continues to be potent, long-lasting analgesia that is tolerable for patients without the potential for dependence and abuse," said John Leonard, senior vice president, global R&D, at Abbott. "NGF blockers have demonstrated the potential to address all of these needs, making them a promising treatment for chronic pain patients," he noted.

PG110 is a novel biologic in Phase I clinical trial development that targets NGF for the treatment of chronic pain. NGF is released at sites of tissue damage and inflammation, and plays a significant role in the transmission of pain signals by the central nervous system. It is currently being studied in a Phase I clinical trial in patients with osteoarthritis. If the Phase I trial is successful, Abbott anticipates evaluating the compound in a number of other pain states, including chronic lower back pain, cancer pain and diabetic neuropathic pain.

This new NGF inhibitor complements Abbott's robust early-stage pipeline of candidates in development for chronic pain, which spans multiple mechanisms, including vanilloid cellular receptors (TRPV1), cannabinoid receptors (CB2), histamine H3 receptors and preclinical work on a number of promising ion channel targets, the US firm noted.