Avanir to buy Alamo Pharma for $29M

USA-based Avanir Pharmaceuticals says that it has entered into a definitive agreement to purchase fellow US firm Alamo Pharmaceuticals, a privately-owned specialty medicines company which markets FazaClo (clozapine, USP), a drug indicated for the treatment of refractory schizophrenic patients.

The transaction will cost Avanir around $29.0 million, $4.0 million in cash and approximately $25.0 million in notes, and is subject to the assumption of debt by the principal shareholder and certain other provisions. In addition, if product sales targets are met by the newly-merged organization, Avanir will be required to pay up to an additional $40.0 million.

Eric Brandt, Avanir's president, said that the acquisition of Alamo was an important step in the development of the company as an integrated pharmaceutical business. He went on to say that FazaClo would be an excellent strategic fit for Avanir's product range, adding that, on the close of the transaction, the Alamo sales force will continue to promote the product in addition to beginning activities designed to raise awareness of the related condition, involuntary emotional expression disorder (IEED).