Forest Laboratories, a subsidiary of an Irish drug company, has completed its previously announced $1.1 billion acquisition of Morrisville-based Furiex Pharmaceuticals.
The all-cash deal was completed Wednesday, a day after Furiex shareholders voted in favor of the acquisition.
In addition to the $1.1 billion purchase price, Furiex shareholders could receive an additional $360 million. The additional payment is contingent on how Furiex’s experimental treatment for patients suffering from irritable bowel syndrome with diarrhea, eluxadoline, is designated by the Food and Drug Administration after it completes its review of the drug.
“This strategic acquisition of Furiex strengthens Actavis’ focus on gastroenterology...where we are an industry leader, positioning us for continued long-term growth in IBS treatment,” Actavis CEO Brent Saunders said in a statement.
Furiex, which has 25 employees, spun out of Wilmington-based Pharmarceutical Product Development in 2010. It became an attractive acquisition target in February after the company announced that Phase 3 tests of eluxadoline achieved targets set by U.S. and European regulators.
The Forest deal to buy Furiex was unveiled in late April. At the time Forest was an independent company but was in the process of being acquired for $25 billion by Dublin-based Actavis. Actavis completed its acquisition of Forest on Tuesday.
In conjunction with the Furiex deal, Forest sold Furiex’s royalties on alogliptin, a treatment for Type 2 diabetes, and on Priligy, a treatment for premature ejaculation, for about $415 million.