Forest Labs to acquire Furiex Pharma in $1.46 billion deal

US drugmaker Forest Laboratories (NYSE: FRX) has entered into a definitive agreement to acquire Furiex Pharmaceuticals (Nasdaq: FURX) for $95 per share, or around $1.1 billion in cash, and up to $30 per share (about $360 million in aggregate) in a contingent value right (CVR), with the aim of expanding its gastro-intestinal business.

The CVR may be payable based on the status of eluxadoline, Furiex’s lead product, as a controlled drug following approval. The acquisition is subject to receipt of customary regulatory approvals and approval by Furiex shareholders. Furiex shares leapt 22.9% to $103.05 on the news, while Forest fell less than 1% to $89.50.

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