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Allergan Paying $370M for Bladder Drug Maker Esprit

Irvine-based Allergan Inc. is paying $370 million for New Jersey’s Esprit Pharma Inc., maker of a drug to treat overactive bladders.

Allergan is paying cash for privately held Esprit. The deal is expected to close in the fourth quarter.

The company said it sees Esprit adding $6 million to $12 million in fourth-quarter sales.

Before the deal, analysts expected $970 million in fourth-quarter sales from Allergan.

The acquisition is seen lowering 2007 profits by up to $18 million as Allergan expands its sales force and launches Esprit’s Sanctura drug, the company said.

Wall Street had expected 2007 profits of $670 million before the deal.

The buy also could impact profits in 2008, according to Allergan. After that, Allergan said it sees Esprit “significantly” adding to profits and revenue.

Sanctura is expected to do $40 million to $48 million in sales this year. Allergan said it thinks the drug has the potential to do $300 million to $400 million in yearly sales.

The drug is taken twice a day to treat overactive bladder. The Food and Drug Administration also has approved a once-a-day version.

Symptoms of overactive bladder include having to go the bathroom often and with urgency.

Allergan makes eye and skin drugs as well as medical cosmetic products including wrinkle-remover Botox.

The company is Orange County’s most valuable on Wall Street with a recent market value of about $19 billion.

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