ViroPharma (NASDAQ:VPHM) has entered into an exclusive option to acquire Meritage Pharma, a San Diego, California-based company developing an orphan drug, in a deal valued at more than $69 million.
Meritage is focused on using oral budesonide suspension as a treatment for eosinophilic esophagitis, a chronic inflammatory disorder of the esophagus. Eosinophilic esophagitis is a newly recognized chronic disease that is increasingly being diagnosed in children and adults, according to a press statement from ViroPharma. It is a rare condition that currently has no approved therapy.
Oral budesonide received orphan drug status in June this year for the treatment of patients with eosinophilic esophagitis. An orphan drug classification gives the developer seven years market exclusivity in the U.S. as well as the potential for priority review and certain tax credits.
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The Exton, Pennsylvania-based pharmaceutical company could exercise the option once data from Meritage’s phase 2 clinical trials is available and a clinical endpoint for phase 3 clinical trials is established. In addition to the acquisition, there would also be potential for additional payments when certain clinical and regulatory milestones are achieved.
ViroPharma’s CEO Vincent Milano said in a press statement that the move reflects its desire to broaden its portfolio with “development opportunities for rare and serious unmet medical needs.”
In October, ViroPharma agreed to acquire DuoCort Pharma AB, a Swedish drug developer of Plenadren for adrenal insufficiency, in a $33.6 million deal. If the company meets certain milestones associated with manufacturing, sales thresholds and territory expansion, it could get an additional $131 million.
ViroPharma also acquired Lev Pharmaceuticals in 2008, another orphan drug company whose drug, Cinryze, treats hereditary angioedema, a rare genetic disorder.
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