Forest Laboratories to acquire Clinical Data for $1.2 billion

Forest Laboratories Inc yesterday said that it would acquire Clinical Data Inc, a Newton-based drug development company, for $1.2 billion in order to gain access to Clinical Data's recently US Food & Drug Administration approved depression drug vilazodone HCl.

Massachusetts-based Clinical Data is a biotechnology company that is engaged in the development and commercialisation of therapeutic products. Its principal product includes its recently approved antidepressant vilazodone HCl that will be marketed under the brand name Viibyrd – an antidepressant drug that has the potential to become a multibillion-dollar product.

The company's other products include Stedivaze, a pharmacologic stress agent in Phase III development for use during myocardial perfusion imaging. As well as other drug candidates in development for various therapeutic areas, including asthma, ophthalmology, and diabetes.

Under the terms of the transaction, New York-based Forest will pay $30 a share in cash plus an additional $6 a share if Viibryd meets certain sales goals.  The deal is valued at $1.2 billion net of cash acquired.

The acquisition will allow Forest to leverage its existing presence in the anti-depressant category through the launch of Viibryd. Forest said that it has a proven track record of successfully commercialising novel anti-depressants. The market for the treatment of MDD is over 200 million prescriptions annually and increasing. 

Forest plans to launch Viibryd in the US during the second half of 2011. Viibryd is expected to retain market exclusivity until March 2020 including full patent term extension of its composition of matter patent and anticipated pediatric exclusivity.