Botox-maker Allergan buys Ft. Washington biotech firm for $639M
Fort Washington biopharma deal
A Fort Washington biotechnology company, Vitae Pharmaceuticals, is being acquired for about $639 million by Botox-maker Allergan PLC, the companies announced Wednesday.
Under the terms of the agreement, Allergan will pay $21 per Vitae share in cash. Vitae shares were up 157.41 percent, or $12.75, to close at $20.85 Wednesday. Shares of Dublin-based Allergan were up 1.96 percent, or $4.71, to close at $244.81 Wednesday in New York.
The acquisition will strengthen Allergan's dermatology product pipeline, adding a potential treatment for psoriasis and other autoimmune disorders. It also adds an experimental treatment for atopic dermatitis. Both compounds are in mid-stage Phase 2 testing.
The deal is expected to close by the end of the year.
"The acquisition of Vitae is a strategic investment for Allergan that adds strength and depth to our innovative medical dermatology franchise," said Allergan CEO Brent Saunders. "Vitae has pioneered the discovery and development of highly differentiated first-in-class compounds in atopic dermatitis, psoriasis, and autoimmune diseases, areas of medicine where innovation is needed for patients."
Vitae CEO Jeff Hatfield said Allergan has "a long track record" in developing and commercializing innovative dermatologic treatments. "I believe our programs will be poised for successful development as part of Allergan's portfolio," he said.
Allergan's key products include the anti-wrinkle treatment Botox, Linzess for irritable bowel syndrome, Actonel for treatment of osteoporosis, and Restasis to treat dry eyes.
In April, Pfizer terminated a planned $160 billion merger with Allergan after the Treasury Department announced tough new rules to thwart U.S. companies from moving their headquarters overseas to lower their tax rates. The new rules make it harder for companies, through mergers, to move their tax addresses out of the United States and then shift profits to low-tax countries, a process called inversion.
Since the deal with Pfizer fell through, Allergan has pursued other research-and-development deals.
On Sept. 6, Allergan bought a gene-therapy startup, RetroSense Therapeutics, for $60 million to acquire an early-stage drug candidate to treat a rare eye disorder, retinitis pigmentosa.
In August, Allergan sold its generics business for $40.5 billion to Teva Pharmaceutical Industries, the world's largest generic-drug maker. Teva has its North America headquarters in North Wales, Montgomery County.