US drug major Eli Lilly (NYSE: LLY), which is facing a number of patent loses in the near future and looking to replace ensuing revenue declines, revealed yesterday that it has signed a definitive merger agreement to acquire Avid Radiopharmaceuticals, a privately held company developing novel molecular imaging compounds intended for the detection and monitoring of chronic human diseases. Lilly’s shares edged 1% higher to $35.73 by close of normal trading in New York yesterday.
Under the terms of the accord, Lilly will acquire all outstanding shares of Avid for an upfront payment of $300 million, subject to adjustment based on existing cash on hand at closing. Avid stockholders will also be eligible for up to $500 million in additional payments contingent upon potential future regulatory and commercial milestones for florbetapir.
Avid's lead program in development is florbetapir F 18 (18F-AV-45), a molecular imaging agent under investigation for detecting the presence of amyloid plaque in the brain. Beta-amyloid plaque is a defining pathology of Alzheimer's disease. A marketing application for florbetapir has recently been submitted to the US Food and Drug Administration. The acquisition of Avid also provides Lilly with a diagnostics development platform covering several disease areas, including Parkinson's and diabetes.
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