A technology for the treatment of acne that was invented by faculty at LSU Health New Orleans is being acquired by Allergan, the $23 billion pharmaceutical company best known as the maker of Botox.
Allergan acquired Anterios, a clinical-stage pharmaceutical company that had licensed an LSU Health-patented technology in 2008. The school holds equity in the technology.
The deal means that Allergan, which last year agreed to merge with Pfizer to create the world’s largest pharmaceutical company, will pay Anterios $90 million upfront as well as potential development and milestone payments.
As a former equity holder in Anterios, LSU Health New Orleans will receive a share of the upfront payment and a share of any payments if additional milestones are reached.
The technology involves applying botulinum toxin, either by injection or directly to the skin. That’s thought to inhibit sweat gland production and decrease sweating and, in turn, preventing pores and hair follicles from getting plugged and causing acne.
The deal marks the first time LSU Health New Orleans has received money for its equity holdings, Larry Hollier, the school’s chancellor, said.
“It also illustrates the value of the innovative research conducted by the LSU Health New Orleans research enterprise,” Hollier said.
Under the deal, a new company, Eirion Therapeutics, was spun out to former Anterios shareholders. LSU Health New Orleans received stock in the new company.
Some of the school’s proceeds will be reinvested in its research enterprise, but officials declined to speculate Thursday on how much the deal will net.
“Allergan and Anterios have just completed their transaction,” said Patrick Reed, director of LSU Health’s Office of Technology Management. “Because of the complexities involved, the paying agent has not yet received the paperwork from all shareholders, and our distribution has not yet been calculated.”