Forest Labs Joins with Nabriva - Analyst Blog
June 05 2012 - 11:57AM
Zacks
Forest Laboratories, Inc. (FRX) recently
boosted its anti-infective portfolio by signing an agreement with
biotech company, Nabriva Therapeutics, for the development of the
latter’s antibacterial candidate, BC-3781.
Under the agreement, Nabriva will receive $25 million from
Forest Labs. Forest Labs will finance and conduct certain
development activities in the next 12 months related to BC-3781 in
collaboration with Nabriva.
Over this period, Forest Labs could exercise its exclusive right
to acquire Nabriva. Other details regarding the agreement were not
disclosed.
BC-3781, which belongs to a novel class of antibiotics
(pleuromutilins), has the potential to be developed for the
treatment of acute bacterial skin and skin structure infections
(ABSSSI) as well as community acquired bacterial pneumonia (CABP).
Positive phase IIb results on the candidate were presented in 2011
for the ABSSSI indication. BC-3781 is slated to move into phase III
studies in 2013.
BC-3781 should fit in well with Forest Labs’ anti-infective
products. We note that Forest Labs already has a product, Teflaro,
for the treatment of patients suffering from acute bacterial skin
and skin structure infection and community acquired bacterial
pneumonia.
Neutral on Forest Labs
We currently have a Neutral recommendation on Forest Labs, which
carries a Zacks #3 Rank (short-term Hold rating). The company is
facing tough times with its lead product, Lexapro, losing patent
protection.
We believe that Forest will continue to seek in-licensing and
acquisition deals to grow its pipeline. We expect investor focus to
remain on the sales ramp of new products. Forest will be facing
another patent cliff in early 2015 when Namenda will lose patent
protection putting $1+ billion at risk.
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