Allergan to Acquire Kythera for $2.1 Bn
Allergan plc (formerly known as Actavis) has agreed to acquire Kythera Biopharmaceuticals, Inc., a biopharmaceutical company focused on the discovery, development, and commercialization of prescription products for the aesthetic medicine market, in a cash and equity transaction valued at $75 per Kythera share, or approximately $2.1 billion.
The acquisition of Kythera enhances Allergan’s global facial aesthetics portfolio with the addition of Kybella (deoxycholic acid) injection, a 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) on April 29, 2015. Kybella injection is also being developed for potential introduction into international markets; Kyther has submitted Kybella injection for regulatory approval in Switzerland, Canada, and Australia, with other market applications to follow. The acquisition will also add Kythera development product setipiprant (KYTH-105), a compound for the prevention of male pattern baldness, as well as additional early-stage development candidates.
Kythera is executing a training-led launch in the US supported by a training program designed to educate physicians and qualified injectors on the safe use of Kybella and its approved indication. Physician faculty education in the US began in June 2015. Kybella physician training programs will initiate in late summer. Qualified injectors in the U.S. will be able to purchase Kybella and treat their patients after they have been trained.
Allergan’s acquisition of Kythera is subject to approval by the shareholders of Kythera , expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, and fulfillment of certain other customary conditions to closing. Pending such approvals and fulfillment of other conditions, Allergan currently anticipates closing the transaction in the third quarter of 2015.