Allergan buy Kythera Biopharmaceuticals $2.1 billion

Allergan to buy Kythera Biopharmaceuticals for $2.1 billion

4:47 AM, 18th June 2015
Allergan to buy Kythera Biopharmaceuticals for $2.1 billion
Brent Saunders, CEO and president, Allergan. (File photo)

DUBLIN, IRELAND/WESTLAKE VILLAGE, US: Allergan Plc said that it will buy Kythera Biopharmaceuticals Inc, a company focussed on aesthetics medicine market for about $2.1 billion ($75 per Kythera share) in a cash and stock deal, to enhance its global facial aesthetics portfolio. The transaction is expected to close in the third quarter of 2015.

The fixed-value transaction consideration will be payable 80 percent in cash and 20 percent in new AGN shares issued to Kythera shareholders. Allergan’s 2015 earnings-per-share forecast provided on 11 May is unchanged as a result of the acquisition. The acquisition is expected to be breakeven in 2016 and accretive thereafter, Allergan said.

The acquisition of Kythera immediately enhances Allergan’s global facial aesthetics portfolio with the addition of Kybella (deoxycholic acid) injection, the first and only approved non-surgical treatment for contouring moderate to severe submental fullness  (excess fat under the chin), commonly referred to as double chin, it said.

Kybella injection is also being developed for potential introduction into international markets - Switzerland, Canada and Australia, with other market introductions to follow.

“The acquisition of Kythera is a strategic investment that strengthens our leading global position in aesthetics and continues to position us for long-term growth. Kybella is also a pivotal entry point for expanding the use of facial aesthetic products in men, while Kythera’s setipiprant (hair-loss) development program can drive additional long-term value,” said Brent Saunders, CEO and president, Allergan.

“Allergan’s world-class medical aesthetics, global footprint, history and commitment to developing leading aesthetic products makes them ideally suited to realize the maximum commercial potential of Kybella,” said Keith Leonard, CEO and president, Kythera.

According to a 2015 survey by the American Society for Dermatologic Surgery, 67 percent of consumers are bothered by submental fullness.

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. Qualified injectors in the US will be able to purchase Kybella and treat their patients after they have been trained.

J P Morgan is serving as financial advisor to Allergan and Covington & Burling LLP is serving as lead legal counsel. Goldman Sachs is serving as financial advisor to Kythera and Latham & Watkins LLP is serving as Kythera’s lead legal counsel.

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