Allergan PLC said on Friday that it will buy privately-held Bonti Inc. for an upfront payment of $195 million. Bonti makes substances that act on the nervous system called neurotoxins for cosmetic and medical uses. The agreement will give Allergan rights to two neurotoxin programs in phase 2 development, EB-001A, which is being developed for cosmetic purposes, and EB-001T, which is intended for medical use. Both are intended to work rapidly, within 24 hours, with the effect lasting two to four weeks, Allergan said. The Friday deal also includes potential commercial milestone payments. Revenue from cosmetic business lines has become a key part of Allergan’s business model, most notably its profitable Botox business and new investments in the “body contouring” market (also known as fat zapping). The pharmaceutical company’s latest acquisition suggests that aesthetics investments are here to stay. Allergan shares have surged 9.5% over the last three months, compared with a 4.4% rise in the S&P 500 and a nearly 4% rise in the Dow Jones Industrial Average .
Date: September 17, 2018
Source: MorningStar
