Allergan PLC agreed to acquire clinical-stage biotechnology company Vitae Pharmaceuticals Inc. for $639 million, more than double its market value, in a move aimed at strengthening the drugmaker's skin-care pipeline.

The price values Vitae at $21 a share, compared with the company's closing price of $8.10 on Tuesday. Vitae shares jumped to $20.93 in premarket trading Wednesday, while Allergan shares rose 0.8%.

The deal gives Allergan a drug in mid-stage trials that is intended to treat psoriasis, a disease that causes scales and itchy dry patches, and other autoimmune disorders. Vitae also is developing another drug to treat atopic dermatitis, or eczema, a skin disease that causes similar itchy patches.

"The acquisition of Vitae is a strategic investment for Allergan that adds strength and depth to our innovative medical dermatology franchise," Allergan Chief Exectuive Brent Saunders said.

Vitae said it uses its special "contour" drug design platform to better discover drug candidates for diseases where biopharmaceutical research has previously struggled to find them.

The deal is subject to customary closing conditions and antitrust approval and is expected to close by the end of the year.

Write to Austen Hufford at austen.hufford@wsj.com

(END) Dow Jones Newswires

September 14, 2016 09:25 ET (13:25 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
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