Allergan nabs 'double chin' drug in $2.1bn acquisition

Cosmetic pharmaceutical company Allergan will acquire a drug that gets rid of double chin in a $2.1bn deal to buy Kythera, the company announced.

Kythera shares rose 22.33% in premarket trade on Wednesday before the US market opened, following news of the acquisition.

Dubin headquartered Allergan’s offer price is $75 per share, 23.5% above Kythera’s Tuesday close.

Allergan will pay 80% cash and 20% in new shares in the deal which is expected to start adding to earnings per share in 2016.

Double chin eliminating drug Kybella, which has been approved by American authorities, is also being developed for other markets around the world.

Allergan president and chief executive Brent Saunders said the new offering will complement the firm’s existing portfolio.

As of 14:47 shares in Kythera were trading higher by 22.28% to $74.25.