Actavis completes Durata Therapeutics acquisition

Actavis has completed the acquisition of Durata Therapeutics in a deal worth $675 million (420 million pounds) plus a potential bonus.

The Irish company, which recently merged with Forest Laboratories in an effort to further support its recent rapid growth, has committed to pay $23 per share for the California-based biotech, while also setting aside a $5 contingent value right which will be distributed to shareholders based on the success of IV antibiotic Dalvance.

Also known by its scientific name dalbavancin, the treatment was recently approved for use in patients diagnosed with acute skin and skin structure infections caused by bacteria such as staphylococcus aureus.

Further research is being conducted into the efficacy of Dalvance as a treatment for hospitalised community-acquired pneumonia and pediatric osteomyelitis and it is thought that a supplementary non-disclosure agreement will be filed in mid-2015.

Brent Saunders, chief executive of Actavis, said: "The acquisition of Durata is a strong strategic fit that strengthens Actavis' emerging infectious disease franchise and aligns with our stated goal to make smart, targeted investments that complement our existing businesses and position the company for continued long-term growth."