Avanir acquires specialty pharmaceutical company for $29 million plus milestone payments

By Elaine Rigoli

Tampa, Fla., May 23 - Avanir Pharmaceuticals said it has agreed to buy Alamo Pharmaceuticals LLC for an upfront payment of about $29 million plus up to $40 million in future milestone payments.

Alamo is a privately owned specialty pharmaceutical company with a sales force of about 50 representatives currently marketing FazaClo, an orally disintegrating formulation of clozapine for the management of severely ill schizophrenic patients who fail to respond adequately to standard schizophrenic drug treatments.

FazaClo is also indicated for reducing the risk of suicidal behavior in patients with schizophrenic or schizoaffective disorder, according to a news release.

The upfront acquisition cost of about $29 million, which excludes transaction costs, consists of about $4 million in cash and about $25 million in notes, the release said.

In addition, if certain sales milestones are achieved, Avanir will be required to pay up to an additional $40 million.

Avanir, located in San Diego, is focused on developing therapeutic products for the treatment of chronic diseases.

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