Medical devices manufacturer Allergan, Inc. has signed a deal to acquire privately held Esprit Pharma Holding Company, Inc. for approximately $370 million in all-cash transaction. The transaction will require anti-trust clearance from the Federal Trade Commission.
Esprit is a US-based pharmaceutical company with expertise in the genitourinary (GU) market. In addition to its currently marketed product, sanctura (trospium chloride), a twice-a-day anticholinergic approved for the treatment of overactive bladder (OAB), the US Food and Drug Administration (FDA) recently granted approval for sanctura XR (trospium chloride extended release capsules), a once-daily formulation of sanctura, the company said.
"The acquisition of Esprit reflects our commitment to build portfolios of products with differentiated profiles in core specialty markets where there is a high unmet need and significant growth potential. With sanctura XR, which has been shown to be effective while significantly reducing typical side effects such as dry mouth associated with many OAB medications, we are building a treatment portfolio that addresses the continuum of care for OAB and other GU disorders. With the operational resources and talent gained from Esprit, we intend to develop in-depth expertise in the GU therapeutic area similar to our other pharmaceutical specialties and further accelerate growth in our U.S. pharmaceutical business," said, David E.I. Pyott, chairman of the board and chief executive officer, Allergan.
Sanctura XR is indicated for the treatment of OAB with symptoms of urge urinary incontinence, urgency and urinary frequency. In clinical studies, sanctura XR was shown to be effective and well tolerated, demonstrating significant improvements in OAB symptoms. Dry mouth, a common side effect in this drug class, was reported in 10.7 per cent of patients treated with sanctura XR, approximately half that reported with sanctura. This is significant because as many as 70 per cent of idiopathic OAB patients, the most common form of OAB, discontinue medication due to insufficient relief of symptoms or intolerable side effects (e.g., dry mouth, dry eyes, constipation, headache), according to a company press release.
"We are proud to be joining Allergan in its efforts to advance the treatment options for GU disorders. Esprit's products will benefit from Allergan's investment and commitment to this category," said John T. Spitznagel, chairman and chief executive officer, Esprint.
Esprit licenses the exclusive right to market sanctura and sanctura XR in the United States and its territories from Indevus Pharmaceuticals, Inc. Esprit has also entered into a co-promotion agreement with Indevus pursuant to which Indevus will co-promote sanctura and sanctura XR for up to 18 months. Allergan currently anticipates launching sanctura XR in the first quarter of 2008. Allergan will retain and increase the size of Esprit's sales organization, currently 160 representatives, and will create a dedicated GU division to serve urologists and their patients, said the company press release.
As per the company reports, its planned acquisition of Esprit is aligned with Allergan's strategic interest in the GU market. Allergan is presently conducting phase II and III clinical trials investigating the use of botox (Botulinum Toxin Type A) for the treatment of idiopathic and neurogenic OAB. OAB is a serious and often debilitating medical condition affecting approximately 33 million Americans. The number of sufferers is expected to increase significantly as the population ages. In addition, Allergan is studying the use of Botox in a phase II clinical trial for the treatment of benign prostatic hyperplasia (BPH), a non-cancerous growth of the prostate that can interfere with urination and is one of the most common diseases among men, affecting approximately 10 million Americans.