Health care company Allergan (NYSE: AGN) has announced plans to purchase exclusive licensing from Korean biopharmaceutical company Medytox.
By 2014, Medytox, according to its website, is "set to become the global leader in the botulinum toxin market," a market that Allergan pioneered with its product Botox.
Under the terms of the deal, Allergan will deliver an upfront payment to Medytox of $65 million, in exchange for worldwide (excluding Korea) rights to develop and market specific neurotoxin products, including one which is liquid injectable. Allergan will pay Medytox up to an additional $116.5 million for achieving certain development milestones as well as an additional $180.5 million for achieving certain commercialization milestones, and royalties on product sales.
Government approvals are required before the deal can close.
