Abbott To Acquire Biologic for Pain

Abbott has entered into a definitive agreement to acquire the global rights to PanGenetics BV’s PG110 fully humanized antibody to Nerve Growth Factor (NGF). The agreement includes an upfront payment of $170 million plus additional milestone payments, for a total of $190 million, as well as royalties.

PG110 is a biologic in Phase I development for the treatment of chronic pain. NGF is released at sites of tissue damage and inflammation, and plays a significant role in the transmission of pain signals by the central nervous system. PG110 is currently being studied in a Phase I trial in patients with osteoarthritis. If successful, Abbott anticipates evaluating the compound in a number of other pain states, including chronic lower back pain, cancer pain and diabetic neuropathic pain.

“The goal for treatment of chronic pain continues to be potent, long-lasting analgesia that is tolerable for patients without the potential for dependence and abuse,” said John Leonard, M.D., senior vice president, global research and development, Abbott. “NGF blockers have demonstrated the potential to address all of these needs, making them a promising treatment for chronic pain patients.”

This transaction, subject to customary closing conditions and regulatory approvals, is expected to close in 4Q09.