Actavis subsidiary Forest Laboratories has completed the acquisition of Furiex Pharmaceuticals, a US-based drug development collaboration company.

Forest Laboratories has acquired Furiex in an all-cash transaction valued at approximately $1.1bn and up to approximately $360m in a contingent value right that may be payable based on the status of Furiex’s eluxadoline as a controlled drug following approval.

Eluxadoline is a locally acting mu opioid receptor agonist and delta opioid receptor antagonist for treating symptoms of diarrhoea-predominant irritable bowel syndrome (IBS-D).

"Eluxadoline could represent a significant advance in the treatment of IBS-D."

In connection with the completion of the Furiex acquisition, Actavis has also divested Furiex’s royalties on alogliptin and Priligy to Royalty Pharma for a payment of approximately $415m.

Actavis president and CEO Brent Saunders said: "If approved, eluxadoline could represent a significant advance in the treatment of IBS-D, and would give Actavis one of the broadest product offerings for the $38bn GI disease market.

"This product, if successful, would make Actavis even more relevant to gastroenterologists and primary care physicians in meeting significant patient needs."

Actavis said that it expects to be in a position to announce an acceptance for filing of the new drug application for eluxadoline by the end of the third quarter of 2014.

Kirkland & Ellis and Wyrick Robbins have advised Furiex in this transaction, while BofA Merrill Lynch and Credit Suisse acted as financial advisors. Covington & Burling served as Forest Laboratories’ legal counsel.