Allergan to acquire yet another GI drugmaker, this time Motus Therapeutics

Continuing its energetic acquisition path of late, Ireland-incorporated Allergan (NYSE: AGN) says it has exercised its option to acquire Motus Therapeutics, formerly known as Rhythm Health, from Rhythm Holding Company, its current owner.

Allergan will pay the exercise price of $200 million at closing to Rhythm Holding. In addition, Rhythm Holding will be eligible for a contingent payment upon first commercial sale of relamorelin. Allergan previously made $47 million in payments related to the option-to-acquire Motus and the relamorelin Phase IIb clinical trial. Completion of Allergan's acquisition of Motus Therapeutics is expected to occur by the end of 2016 subject to customary closing conditions.

This latest deal is a clear demonstration of Allergan’s commitment to growing in the GI space. In the past five weeks, the group has spent nearly $2 billion on Akarna (focused on developing novel small molecule therapeutics that target inflammatory and fibrotic diseases and Tobira (a developer of therapies for non-alcoholic steatohepatitis and other liver diseases) and now Motus. This is also Botox-maker Allergan’s eighth acquisition this year.