Allergan plc (NYSE: AGN) has agreed to acquire Vitae Pharmaceuticals Inc. (Nasdaq: VTAE) in a deal valued at nearly $639 million. Allergan will pay the target $21 per share. The deal is expected to close by the end of 2016.
Vitae’s products will be “poised for successful development as part of Allergan’s portfolio,” according to Vitae chief executive officer Jeff Hatfield. The acquisition is a “strategic investment for Allergan that adds strength and depth” to the company’s medical dermatology pipeline, according to Brent Saunders, chief executive officer at Allergan. The deal brings both Vitae’s VTP-43742 and VTP-38543 products to Jersey City, Jersey-based Allergan. The former is a potential treatment for autoimmune diseases and recently completed clinical trials, while the latter helps treat damaged skin layers and is now going through clinical trials.