(RTTNews) -  Drug maker Abbott Laboratories (ABT: News ), Wednesday said it signed a definitive agreement to acquire the global rights to PanGenetics BV's PG110 fully humanized antibody to Nerve Growth Factor for about $190 million. The move is seen as an effort to expand Abbott's pain care portfolio and is also expected to leverage its expertise in the field of biologics.

Abbott will make an an upfront payment of $170 million with additional milestone payments, aggregating up to $190 million.

Upon closing of the transaction, expected in the fourth quarter of 2009, Abbot anticipates incurring one-time specified items, primarily related to in-process research and development. Abbot, however, said that its previously issued ongoing earnings-per-share guidance for 2009 will not be impacted by the transaction.

Commenting on the pain care portfolio, Abbot observed that the current treatments for chronic pain provides relief only to 30% of the chronic pain patients, while there are around 72 million diagnosed patients in the US and EU. Treatment also employs NSAIDs, selective Cox-2 inhibitors, opioids and other analgesics that are dosed daily, having various tolerability and safety issues, including the potential for abuse and addiction.

John Leonard, senior vice president, global research and development, Abbott said, "The goal for treatment of chronic pain continues to be potent, long-lasting analgesia that is tolerable for patients without the potential for dependence and abuse."
PG110, a novel biologic in Phase I clinical trial development, targets NGF for the treatment of chronic pain. NGF is released at sites of tissue damage and inflammation, and plays a significant role in the transmission of pain signals by the central nervous system.

Abbot also noted that even though PG110 is currently being studied in a Phase I clinical trial in patients with osteoarthritis, it would also be evaluated in a number of other pain states, including chronic lower back pain, cancer pain and diabetic neuropathic pain, if found successful in phase I trials.

ABT is currently trading at $53.63, up $0.37 or 0.69%, on a volume of 0.81 million shares.

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by RTT Staff Writer

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