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A Closer Look at the Allergan–Bonti Deal

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Allergan’s announcement

On September 14, Allergan (AGN) announced the acquisition of Bonti Inc., a clinical-stage biotechnology company. Bonti is a privately held company focused on developing and commercializing the neurotoxin programs for use in aesthetics and therapeutics. The chart below shows the highlights of the deal.

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About the acquisition

Allergan announced the acquisition of Bonti Inc., a privately held biotechnology company. The acquisition is expected to provide Allergan with the global rights to Bonti’s pipeline, which includes two primary programs:

  • EB-001A (for Aesthetics)
  • EB-001T (for Therapeutics)

Both programs are botulinum neurotoxin serotype E (BoNT/E) programs and are currently in Phase 2 clinical development. EB-001 is the active ingredient for both programs and is a novel BoNT/E that onsets the action in 24 hours. EB-001 is effective for two to four weeks.

Bonti recently announced the positive top-line results of the first clinical study, which confirmed the safety and efficacy for EB-001 in glabellar frown lines. According to the company, ~65.0 million consumers in the United States are interested in injectable facial treatments, some of which may be interested in these fast-acting short duration products.

Allergan plans to make an upfront payment of $165.0 million toward the acquisition of Bonti Inc. There are additional milestone payments linked to the commercial milestones that are subject to adjustments and customary closing conditions.

The SPDR S&P Pharmaceuticals ET (XPH) holds 4.5% of its total investments in Allergan (AGN), 5.0% in Eli Lilly & Co. (LLY), 4.6% in Bristol-Myers Squibb Co. (BMY), and 4.7% in Pfizer (PFE).

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