This drug deal won't be painful for either side -- as long as the drug works, of course.
Yesterday, Bristol-Myers Squibb
The drug is ready to enter phase 2 testing for neuropathic pain, which occurs when nerves are damaged. Like many pain drugs, AGN-209323 can presumably be used in other indications, and Bristol has grabbed them all except eye pain. Allergan, an eye-care specialist, kept rights to develop the compound as a treatment directly for the eye.
Neuropathic pain seems to be a hotbed for partners right now. GlaxoSmithKline
The reason for all the activity is because there's still a high need for treatments for neuropathic pain. Eli Lilly's
We're still years away from seeing AGN-209323 on the market -- hopefully with a catchier name -- but overall, the deal seems good for both sides. Allergan gets some upfront cash for developing the drug this far, and Bristol-Myers gets to hold on to its well-earned pot of gold until the drug shows a little progress.
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Fool contributor Brian Orelli, Ph.D., doesn't own shares of any company mentioned in this article. Pfizer is a Motley Fool Inside Value pick. The Fool owns shares of GlaxoSmithKline. The Fool has a disclosure policy.