Allergan licenses pain drug to Bristol-Myers Squibb

IRVINE, Calif. Bristol-Myers Squibb is buying most of the rights to an investigational pain drug for $40 million from Allergan, the two companies announced Wednesday.

The two drug makers said Allergan would grant Bristol exclusive worldwide rights to develop, manufacture and commercialize the drug AGN-209323, which is in clinical development as a treatment for neuropathic pain. The agreement covers all potential uses for the drug except for ophthalmology applications for drugs formulated for use on the eyes, where Allergan will retain certain rights.

Under the agreement, Allergan will be eligible to receive milestone payments of up to $373 million and royalties in addition to the upfront payment from Bristol.