Durata Therapeutics, Actavis deal

Actavis will acquire Durata for $23 per share in cash up front, or $675 million, plus up to $146.5 million in regulatory and commercial milestones in the form of a contingent value right (CVR) worth up to $5 per share. The price is a 65.7% premium to Durata's close of $13.88 on Oct. 3, before the deal was announced. The deal includes antibiotic Dalvance dalbavancin, which Actavis said would complement its marketed Teflaro ceftaroline fosamil cephalosporin and ceftazidine- avibactam, a third-generation cephalosporin combined with a broad-spectrum beta lactamase (LACTB) inhibitor, in the company's push to create a point-of-care anti-infective franchise.

Dalvance is a second-generation glycopeptide dosed once a week for two weeks to treat acute bacterial skin and skin structure infections (ABSSSI) caused by susceptible Gram-positive bacteria, including methicillin-resistant Staphylococcus aureus (MRSA). It has Qualified Infectious Disease Product (QIDP) status in the U.S. to treat ABSSSI. Dalvance is also under development for hospitalized community-acquired pneumonia and pediatric osteomyelitis. An MAA for Dalvance for ABSSSI is under review in Europe, with a decision expected in 1H15; an approval would trigger a $1 per share CVR payment. In mid-2015, Durata plans to submit an sNDA to FDA for a single-dose regimen of Dalvance, and FDA approval would also trigger a $1 per share CVR payment. CVR holders are eligible for an additional $3 per share commercial milestone based on net worldwide sales of Dalvance. ...