Allergan to Pay Medytox for Neurotoxin Licensing
Health care company Allergan has announced plans to purchase exclusive licensing from Korean biopharmaceutical company Medytox.
By 2014, Medytox, according to its website, is "set to become the global leader in the botulinum toxin market," a market that Allergan pioneered with its product Botox.
Under the terms of the deal, Allergan will deliver an upfront payment to Medytox of $65 million, in exchange for worldwide (excluding Korea) rights to develop and market specific neurotoxin products, including one which is liquid injectable. Allergan will pay Medytox up to an additional $116.5 million for achieving certain development milestones as well as an additional $180.5 million for achieving certain commercialization milestones, and royalties on product sales.
Government approvals are required before the deal can close.
The article Allergan to Pay Medytox for Neurotoxin Licensing originally appeared on Fool.com.Fool contributor Caroline Bennett has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.