Allergan to Buy Vitae Pharmaceuticals for $639 Million
September 14 2016 - 9:40AM
Dow Jones News
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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