Teva Pharmaceutical Industries Ltd. plans to expand its lineup of migraine treatments by purchasing Labrys Biologics in a deal that could ultimately be worth more than $800 million.
The Israeli drugmaker said Tuesday that it will pay $200 million in cash up-front for the privately held drug developer and possibly an additional $625 million in milestone payments.
Labrys Biologics has no products on the market, but Teva cited the San Mateo, California, company's experimental drug for the prevention of chronic migraines as a key reason behind the deal. The drug, labeled LBR-101, is in midstage clinical testing.
Teva said the drug will complement the migraine treatment patch Zecuity that it acquired with the purchase of NuPathe Inc. Teva also is developing a potential abuse-resistant, extended-release version of the pain treatment hydrocodone.
U.S.-traded shares of Teva slipped 36 cents to $51.59 Tuesday morning, while the Standard & Poor's 500 index also fell slightly.
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