Forest Laboratories says it will spend as much as $1.5 million to buy Furiex Pharmaceuticals Inc. in a deal that could give the drug maker one of the broadest product lines for gastrointestinal treatments.
Forest says it will pay about $1.1 billion in cash, or $95 per share, for Morrisville, N.C.-based Furiex. It also will make an additional payment of up to about $360 million based on the development of eluxadoline. That treats the symptoms of a form of irritable bowel syndrome. Furiex plans to submit it to regulators for approval later this year.
Forest also plans to divest royalties Furiex receives on a couple of treatments to Royalty Pharma for about $415 million.
New York-based Forest Laboratories Inc. also is the subject of an acquisition bid by Ireland-based Actavis Plc.