After raising more than $36 million in early-stage venture funding, pharmaceutical company Meritage Pharma has agreed to be acquired by ViroPharma for an initial payment of $7.5 million. ViroPharma has also agreed to provide an additional $12.5 million, contingent upon the successful completion of clinical developments. Meritage is a developer of “prescription products based on safe and effective molecules for the treatment of gastrointestinal and atopic diseases,” according to its website. The company will reportedly use the recent influx of cash to conduct additional Phase 2 clinical assessments of its initial product candidate, Oral Budesonide Suspension, an oral formula for the potential treatment of eosinophilic esophagitis. Exiting investors of the company include Domain Associates, Latterell Venture Partners and The Vertical Group.