Endo Plans Acquisition

The company will buy RxKinetix.
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Pain-drug developer

Endo Pharmaceuticals

(ENDP) - Get Report

is buying privately held cancer drugmaker RxKinetix to expand into a different area.

Endo will make an upfront payment of as much as $20 million for the company, with a possible $95 million in additional payments based on development and regulatory milestones.

"The acquisition of RxKinetix is consistent with our strategic goal of expanding into therapeutic areas that are complementary to pain," said Peter Lankau, Endo's president and CEO.

RxKinetix's lead drug under development, RK-0202, is a topical rinse for the prevention of oral mucositis, a painful condition caused by chemotherapy.

"A product such as RK-0202, if approved, would be a natural extension of this franchise, and we look forward to working with our new colleagues in the development of this and other cancer-related palliative care treatments in the RxKinetix pipeline," Lankau said in a press release after the close of trading Thursday.

Shares were up 2.3% to $34.25 Friday.