One Out of the Two Reasons Allergan (AGN) Paid $640 Million for Vitae Pharma (VTAE) Just Flunked Mid-Stage Test
11/3/2016 6:03:22 AM
Allergan took an R&D hit this quarter as it emerged from analysts that a Phase II test of dermatology med VTP-38543, acquired as part of a $640 million buyout deal of Vitae in September, has failed.
The med, a topical LXRß (Liver X Receptor beta) selective agonist aimed at treating atopic dermatitis, “failed to show a positive signal in proof of concept,” according to analysts from Leerink and Evercore ISI.
The drug was one of the two leading meds in Vitae’s pipeline, the other being the midstage psoriasis med VTP-43742, and leads to questions over its purchase--coming as it also noted in its Q3 that it was to buy back $10 billion in an accelerated share repurchase program.
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