Allergan to buy Vitae Pharmaceuticals in $639m deal

Allergan has agreed to buy clinical-stage biotechnology company Vitae Pharmaceuticals for $21 per share in cash, for a total transaction value of about $639m.

The Dublin-based pharmaceutical company said the deal will strengthen its dermatology product pipeline, with the addition of a Phase 2 first-in-class inhibitor for the potential treatment of psoriasis and other autoimmune disorders.

It will also add a topical selective agonist for the potential treatment of atopic dermatitis.

Allergan’s chief executive officer 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."

Jeff Hatfield, president and CEO of Vitae, said: “Allergan has a long track record in developing and commercialising innovative dermatologic treatments. I believe our programs will be poised for successful development as part of Allergan's portfolio.”

Allergan shares were up 0.7% to $241.88 in pre-market trade.