Allergan acquire Kythera Biopharmaceuticals for $2.1 bn

Allergan Plc has agreed to acquire Kythera Biopharmaceuticals Inc - the US-based biopharmaceutical company focused on the discovery, development and commercialisation of novel prescription products for the aesthetic medicine market - in a cash and equity transaction valued at approximately $2.1 billion.
 
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, commonly referred to as double chin. Kybella was approved by the US Food and Drug Administration (USFDA) on April 29, 2015. Kybella injection is also being developed for potential introduction into international markets; Kythera has submitted Kybella injection for regulatory approval in Switzerland, Canada and Australia, with other market applications to follow. The acquisition will also add Kythera's development product setipiprant (KYTH-105), a novel compound for the prevention of male pattern baldness, as well as additional early-stage development candidates.
 
"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," said Brent Saunders, CEO and president of Allergan. 
 
Submental fullness is a common yet undertreated condition that can detract from an otherwise balanced and harmonious facial appearance – leading to an older and heavier look. Submental fullness can affect adults – both women and men – of all ages, weight and gender. Influenced by multiple factors including aging and genetics, submental fullness is often resistant to diet and exercise. 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 and its approved indication. Physician faculty education in the US began in June 2015. Kybella physician training programs will initiate in late summer. Qualified injectors in the US will be able to purchase Kybella and treat their patients after they have been trained.
 
Allergan's acquisition of Kythera is subject to approval by the shareholders of Kythera, expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and fulfillment of certain other customary conditions to closing.