Cerexa, Forest Laboratories deal

FRX said it will acquire Cerexa for $480 million in cash. The deal gives FRX worldwide rights to ceftaroline, except in Japan. The cephalosporin antibiotic is expected to begin Phase III testing for complicated skin and skin structure infections (cSSSIs) in 1Q07 and community-acquired pneumonia (CAP) in 2Q07. Cerexa, which has ex-Japan rights to the compound from Takeda Pharmaceutical Co. Ltd. (Tokyo:4502, Osaka, Japan), is eligible for a $100 million milestone payment if U.S. sales exceed $500 million during any 12-month period within the first five years on the market.

Cerexa also has ME1036, a preclinical broad-spectrum parenteral carbapenem that has demonstrated activity against aerobic and anaerobic Gram-positive and Gram-negative bacteria, including drug-resistant strains. Cerexa licensed exclusive worldwide rights to ME1036 from Meiji Seika Kaisha Ltd. (Tokyo, Japan) (see BioCentury, Nov. 6). FRX also will receive an option to a third compound, an undisclosed early stage antibiotic, from an undisclosed entity. Cerexa was spun out of Peninsula Pharmaceuticals Inc., which was acquired by Johnson & Johnson (JNJ, New Brunswick, N.J.) last year (see BioCentury, April 25, 2005). ...