Allergan has completed the previously announced acquisition of US-based Chase Pharmaceuticals for $125m.
CPC-201 is a lead compound of Chase and combination of the commonly prescribed acetylcholinesterase inhibitor (AChEI), donepezil, and the peripherally acting cholinergic blocker, solifenacin.
AChEIs have been approved and are only modestly effective due to dose-limiting side effects, including diarrhoea, nausea and vomiting.
Allergan chief research and development officer David Nicholson said: "Alzheimer's disease is a neurodegenerative disease that represents a major and growing global public health problem, for which very few approved treatment options are available, and the societal cost is measured in hundreds of billions of dollars, so the need for improved treatment choices is paramount.
"This acquisition adds a new Phase III ready programme for Alzheimer's disease to our CNS portfolio and builds on our commitment to develop innovative approaches to improve the lives of millions of patients suffering from this devastating illness."
During Phase II clinical trials, 29 out of 33 patients reached 40mg/d of donepezil and did not experience dose-limiting adverse events.
Chase Pharmaceuticals CEO and president Douglas Ingram said: "We at Chase Pharmaceuticals are passionate about developing and bringing to physicians and their patients profoundly improved Alzheimer's disease treatments.
“I am very excited that Allergan has recognised the strong clinical value of our development programmes and look forward to seeing Allergan apply its leading clinical development and regulatory expertise to bring these potential treatments forward for patients."
Chase recently completed an end of Phase II meeting with the Food and Drug Administration (FDA) and based on the feedback, Allergan proposes to advance CPC-201 into a single Phase III registration study next year.