Allergan Plc, a botox-maker, said it has planned to buy Kythera Biopharmaceuticals Inc in a cash-and-stock deal valued at about US$ 2.1 billion, to expand its line of cosmetic treatments.
The Dublin drug maker will pay US$ 75 per share in a cash-and-stock deal for Kythera, based in Westlake Village, California. Allergan’s offer consists of 80 per cent cash and 20 per cent in stock, and the deal is expected to close in the third quarter of 2015.
The acquisition of Kythera immediately enhances Allergan’s global facial aesthetics portfolio with the addition of Kybella injection, the first and only approved non-surgical treatment for contouring moderate to severe submental fullness, commonly referred to as double chin.
Kybella was approved by the US Food and Drug Administration (FDA) in April 2015. Kybella injection, which is also pending regulatory approvals in Switzerland, Canada, and Australia, and other markets, is expected to earn at least US$ 500 million in US, and is likely to generate the same amount in international sales.
“The acquisition of Kythera is a strategic investment that strengthens our leading global position in aesthetics and continues to position us for long-term growth,” said Brent Saunders, CEO and President, Allergan.
Allergan’s world-class medical aesthetics, global footprint, history and commitment to developing leading aesthetic products makes them ideally suited to realize the maximum commercial potential of Kybella,” said Keith Leonard, CEO and president of Kythera.