Allergan Buys Rights To Merck's Migraine Treatment Development Program

Allergan PLC said Tuesday that it has acquired the rights to Merck & Co.'s migraine treatment development program for an upfront payment of $250 million. As part of the license agreement, Allergan will pay $125 million after receiving antitrust regulatory clearance, and pay another $125 million in April 2016. Merck will also be eligible for other payments and royalties based on commercialization milestones. Allergan said its 2015 earnings-per-share forecast remains unchanged following the deal. Shares of Allergan and Merck, which were both inactive in premarket trade, have advanced 19% and 1.3%, respectively, year to date, compared with the S&P 500's 0.5% gain.