Abbott in $575 million deal for rights to Neurocrine's elagolix for the treatment of endometriosis

17 June 2010

Health care major Abbott Laboratories has entered into a collaboration agreement with fellow USA-based Neurocrine Biosciences to develop and commercialize elagolix for the treatment of endometriosis-related pain, in a deal that could see the latter firm earning as much as $575 million. The news sent Neurocrine's Nasdaq-traded shares up 13% to $5.31 in morning trading yesterday.

Under the terms of the accord, Abbott will receive worldwide exclusive rights to develop and commercialize elagolix and all next-generation GnRH antagonists for women's and men's health. Abbott will make an upfront payment of $75 million and will fund all ongoing development activities. Neurocrine is eligible to receive additional milestone payments of approximately $500 million from Abbott for the achievement of certain development, regulatory and commercial milestones; funding for certain internal collaboration expenses; plus royalty payments on any future product sales. In addition to endometriosis, elagolix will be evaluated for the treatment of uterine fibroids.

Enhances Abbott's pipeline

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