Allergan To Acquire Motus Therapeutics For $200 MillionBy
Allergan has exercised an option to acquire Motus Therapeutics, a biopharmaceutical company developing peptide therapeutics for treating gastrointestinal disorders and a wholly owned subsidiary of Rhythm Holding Company.
The key product from Motus is relamorelin, a ghrelin agonist, for treating gastroparesis in patients with Type 1 and Type 2 diabetes in Phase IIb clinical development. Derived from the natural ghrelin sequence, relamorelin has been optimized to stimulate gastrointestinal motility. The US Food and Drug Administration has granted fast track review status to relamorelin for treating diabetic gastroparesis.
As a result of exercising its option to acquire Motus Therapeutics, 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.