Allergan to Acquire Dermatology Pharma Company Vitae Pharmaceuticals for $639 Million
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Allergan has agreed to acquire Vitae Pharmaceuticals, a clinical-stage biotechnology company, for $21.00 per share, in cash, for a total transaction value of approximately $639 million.

The acquisition will strengthen Allergan’s dermatology product pipeline, with the addition of VTP-43742, a Phase II orally active RORγt (retinoic acid receptor-related orphan receptor gamma) inhibitor for the potential treatment of psoriasis and other autoimmune disorders. The compound recently completed a Phase II proof-of-concept multiple ascending dose trial in patients with moderate to severe psoriasis.

The acquisition also adds VTP-38543, a topical LXRβ (Liver X Receptor beta) selective agonist for the potential treatment of atopic dermatitis. It is believed that VTP-38543 works by decreasing inflammation in damaged skin tissue and repairing the damaged outer layer of skin. VTP-38543 is currently in a Phase IIa proof-of-concept clinical trial assessing the safety, tolerability and efficacy in patients with mild-to-moderate atopic dermatitis.

Also, Allergan would gain Vitae’s Contour structure-based drug design platform to discover product candidates for validated therapeutic targets.

Under the terms of the merger agreement, a subsidiary of Allergan will commence a cash tender offer to purchase all of the outstanding shares of Vitae common stock for $21.00 per share. The closing of the tender offer is subject to customary closing conditions, including US antitrust clearance and the tender of a majority of the outstanding shares of Vitae common stock. The merger agreement contemplates that Allergan will acquire any shares of Vitae that are not tendered into the offer through a second-step merger, which will be completed following the closing of the tender offer. Pending approvals, Allergan anticipates closing the transaction by the end of 2016.The boards of directors of both companies have unanimously approved the transaction.

Source: Allergan

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