Forest Laboratories, Inc. has signed a definitive merger agreement to acquire Cerexa, Inc. for $480 million cash. As part of the acquisition, Forest will obtain worldwide development and marketing rights (excluding Japan) to two injectable antibiotics and an option to a third, early stage injectable antibiotic. The lead compound, ceftaroline acetate, which is entering Phase III studies, is a next generation, broad-spectrum, hospital-based cephalosporin antibiotic that is being developed for initial indications of complicated skin and skin structure infections (cSSSI) and community acquired pneumonia (CAP).

The second product, ME1036, a broad-spectrum parenteral carbapenem, is currently in preclinical development and has demonstrated activity against both aerobic and anaerobic Gram-positive and Gram-negative bacteria, including common drug-resistant pathogens.

“Ceftaroline is an important late-stage development product that can address serious and life-threatening infections in the hospital setting including MRSA. We have a high degree of confidence in the successful commercialization and financial prospects for ceftaroline given the strength of the existing clinical data and the need for a next generation hospital based antibiotic,” commented Howard Solomon, chairman and chief executive officer of Forest.

Dennis Podleask, Cerexa’s chief executive officer, added, “We received significant interest in Cerexa from multiple parties and are delighted to be entering into this transaction with Forest, who will be assuming responsibility for the development and future commercialization of ceftaroline. Forest has a proven track record of success in developing and commercializing products and we have great confidence in their ability to optimize the therapeutic and commercial potential of the Cerexa portfolio.”

The transaction is expected to close in Forest’s fourth quarter following the expiration of the Hart-Scott-Rodino antitrust waiting period.