Actavis negotiates option to acquire Rhythm Health

Actavis has been granted an exclusive option to acquire Rhythm Health, currently a wholly owned subsidiary of the biopharmaceutical company Rhythm.

The firm will provide a $40 million (24.93 million pounds) upfront payment in exchange for the option to acquire both Rhythm Health and the worldwide rights to its drug relamorelin, a peptide ghrelin agonist for the treatment of diabetic gastroparesis and other gastrointestinal functional disorders.

Rhythm has completed successful phase II trials of relamorelin for the treatment of diabetic gastroparesis and chronic constipation. A phase IIb study is to be initiated early next year.

The transaction is limited to the acquisition of Rhythm Health and does not include Rhythm's other subsidiary, Rhythm Metabolic.

David Nicholson, senior vice-president for global brand research and development at Actavis, said: "The option to acquire Rhythm Health and its relamorelin development candidate demonstrates our commitment to identify unique opportunities and, through innovative business initiatives, expand our potential product franchises in core therapeutic categories."

The company has been making a number of strategic acquisitions over the last few years, completing a multibillion-dollar takeover of Forest Laboratories earlier this year.