Abbott Laboratories said Thursday it is buying a potential chronic pain drug from PanGenetics BV for as much as $190 million.
Abbott said the drug is in early-stage clinical testing as a treatment for pain cause by arthritis. If that trial is successful, Abbott may test it against chronic lower back pain, cancer pain, and diabetic nerve pain. It said the drug blocks a chemical called nerve growth factor, or NGF, which is released at sites where tissues are damaged or inflamed.
PanGenetics, based in the Netherlands, will receive $170 million upfront from Abbott, and $20 million in milestone payments if the drug advances through development. Abbott said the deal will close before the end of 2009, and while it will take one-time charges related to the deal, the company said it does not need to change its profit guidance for the year.
In morning trading, Abbott stock rose a penny to $53.27.