Sosei Shares Climb Most in Three Years on Allergan Pact
- Deal gives Allergan rights to neurological disease portfolio
- Sosei unit could get up to $665 million in milestone fees
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Japan’s Sosei Group surged the most in more than three years after Allergan Plc said it will pay $125 million upfront to the drugmaker’s unit for rights to a portfolio of treatments for neurological disorders including Alzheimer’s disease.
The pact drove Sosei shares 21 percent higher in Tokyo, its biggest gain since June 2012. Dublin-based Allergan said in a statement that it also may pay the Heptares Therapeutics unit as much as $665 million in milestone fees for the successful development and launch of the first three licensed drugs in the agreement. Heptares also could receive as much as $2.5 billion if certain annual sales targets are achieved, and Allergan will commit as much as $50 million to fund research and development.