On Sunday, Allergan publicized that it is buying Naurex, a drug manufacturing company. Allergan will purchase the company by spending $560 million in cash. Discussions with regard to the deal started late last year.

Dublin-based pharmaceutical giant, Allergan PLC, has announced that it is going to purchase Naurex for $560 million in cash. Talks on acquisition started late last year.

The announcement has come at a time when Allergan is in talks to sell its generic drug division to Israel-based Teva Pharmaceutical Industries Ltd. It is said the deal worth around $45 billion could be announced by Monday.

Teva is known for its production of generic drugs and Allergan, which was earlier known as Actavis, is known for Botox treatment.

Naurex is into development of antidepressant drugs and is based in Evanston, Illinois. Its drugs have been clinically tested, but they are yet to be approved for sale. Its intravenous treatment and oral depression treatment are being studied.

Brent Saunders, Allergan's chief executive, said, “The bottom line is it's an incredibly exciting opportunity to change the paradigm in mood disorders particularly in depression and perhaps suicidality”.

Depression is said to be one of the areas whose medical needs are yet to be met. Current therapies provide modest effects, but with many side-effects. Out of the total amount, $460 million will have to be paid on the closing of the deal and the rest amount by January 2016.

Allergan is expecting the transaction closing to be by the end of 2015. Allergan said the Naurex deal will help making the growth profile strong.