Allergan sells Bristol-Myers Squibb rights to early-stage pain drug for up to $413 million

Confirming a trend of mega-licensing deals that has been in evidence for a couple of years as pharmaceutical companies struggle to get the necessary results from their own research efforts, US drug major Bristol-Myers Squibb has entered into a deal with fellow USA-based Allergan to acquire rights to AGN-209323, a Phase II-ready, orally-administered small molecule in clinical development for neuropathic, or chronic pain, which is common in people with arthritis, cancer and nerve damage. The drug can be given orally.

Under the terms of the agreement, Allergan will grant to B-MS exclusive worldwide rights to develop, manufacture and commercialize AGN-209323 and backup compounds. The deal encompasses all potential indications - except ophthalmology for products formulated for local delivery to the eye, where Allergan will retain certain rights. In return, B-MS will pay an upfront $40 million, potential AGN-209323-related development and regulatory-based milestones of up to $373 million, as well as royalty payments on worldwide sales on any drugs that come to the market.

'There is significant unmet medical need for a more efficacious and tolerable therapy for neuropathic pain,' said Francis Cuss, senior vice president, Discovery and Exploratory Clinical Research, at B-MS, adding: 'We are pleased to have the opportunity to develop this potential first-in-class compound that could help patients prevail over chronic pain and strengthen our neuroscience pipeline.'