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DUBLIN, Ireland — Allergan plc plans to buy clinical-stage biotech firm Vitae Pharmaceuticals Inc. in a cash deal valued at $639 million.
Allergan said the acquisition will bolster its dermatology product pipeline with the addition of VTP-43742, a Phase 2 orally active RORγt inhibitor for the potential treatment of psoriasis and other autoimmune disorders. The deal also will bring Allergan VTP-38543, a topical Liver X Receptor beta selective agonist for the potential treatment of atopic dermatitis.
“The acquisition of Vitae is a strategic investment for Allergan that adds strength and depth to our innovative medical dermatology franchise,” stated Brent Saunders, president and chief executive officer of Allergan. “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.”
Allergan noted that Vitae uses its Contour structure-based drug design platform to discover product candidates for validated therapeutic targets where biopharma R&D has traditionally struggled to develop drugs because challenges related to potency, selectivity and pharmacokinetics. That has given Vitae’s R&D team the ability to create first-in-class product candidates for challenging therapeutic targets, the company said.
“Both the VTP-43742 and VTP-38543 programs offer the potential for highly differentiated mechanisms of action for the treatment of dermatologic conditions where patients are underserved by currently approved treatments,” commented David Nicholson, chief research and development officer at Allergan. “In addition, Vitae’s novel Contour drug discovery platform and its team, which have been instrumental in the discovery of novel ‘difficult to drug’ compounds, will be highly complementary to Allergan’s existing R&D discovery efforts in key therapeutic areas.”
Under the agreement, a subsidiary of Allergan will commence a cash tender offer to purchase all of the outstanding shares of Vitae common stock for $21 per share. The boards of directors of both companies have unanimously approved the deal, which is expected to be completed by the end of 2016, pending shareholder and regulatory approvals and other customary conditions.
