Abbott Acquires Kidney Compound

Abbott Laboratories has acquired a compound in development as a treatment to prevent kidney injury associated with major cardiac surgery from Action Pharma, a privately held drug firm in Aarhus, Denmark. Abbott will pay Action $110 million for all rights to develop and commercialize AP214, which is currently in Phase II clinical trials. The U.S. firm will also be responsible for funding future development and commercialization but will pay no milestone payments or royalties. As part of the agreement, Abbott will also in-license Copenhagen-based Zealand Pharma’s technology, called SIP, for use in the development of AP214. Action’s 2003 licensing agreement with Zealand has been canceled. The firm will make a one-time payment of $11 million to Zealand.