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news.Ireland's botox-maker Allergan has entered into an agreement to acquire US-based Kythera Biopharmaceuticals in cash-and-stock deal valued at about $2.1bn.
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The transaction, valued at $75 per Kythera share, is subject to the fulfillment of certain customary conditions.
According to the company, the fixed-value transaction consideration will be payable 80% in cash and 20% in new AGN shares issued to Kythera shareholders.
The acquisition of Kythera will give Allergan access to Kybella (deoxycholic acid) injection, the first and only approved non-surgical treatment to reduce fat under the chin.
In April this year, the US Food and Drug Administration (FDA) granted approval for Kybella injection, which is also being developed for potential introduction into international markets.
Allergan CEO and president Brent Saunders said: "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.
"As a leader in aesthetics, we know our customers are looking to offer their patients new options beyond traditional facial aesthetics.
"Kybella will do that while complementing our market leading facial aesthetics portfolio, which includes Botox, Juvederm XC, Juvederm Voluma XC, Latisse and Skinmedica.
"Kybella is also a pivotal entry point for expanding the use of facial aesthetic products in men, while Kythera’s setipiprant (hair-loss) development program can drive additional long-term value."
Kythera has submitted Kybella injection for regulatory approval in Switzerland, Canada and Australia, with other market applications to follow.
The acquisition will also add Kythera’s development product setipiprant (KYTH-105), a new compound for the prevention of male pattern baldness, as well as additional early-stage development candidates.
JPMorgan is acting as financial adviser to Allergan and Covington & Burling is the company’s lead legal counsel, while Goldman Sachs is serving as Kythera’s financial adviser.
Image: With the acquisition of Kythera, Allergan will have access to Kybella injection. Photo: courtesy of adamr/FreeDigitalPhotos.net.