Allergan plc AGN and Vitae Pharmaceuticals Inc VTAE reached an agreement by which the former would buy the latter for $21.00 a share in cash. This would translate into a total transaction value of about $639 million. The companies expect the transaction to be completed before the current year ends.
According to the agreement terms, Allergan's subsidiary would initiate a cash tender offer to buy Vitae shares. The deal enables the company to buy shares that are not tendered in the tender offer through a second-step merger.
Allergan believes the acquisition would strengthen its dermatology product pipeline as Vitae is engaged in a phase 2 study of VTP-43742. Incidentally, the compound completed a second stage proof-of-concept multiple ascending dose trial only recently.
Allergan's CEO and President, Brent Saunders, said, "The acquisition of Vitae is a strategic investment for Allergan that adds strength and depth to our innovative medical dermatology franchise. 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."
After being halted, shares of Vitae traded up more than 155 percent at $12.77 in the pre-market session.
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