Allergan Bolsters Facial Aesthetics Portfolio With Kythera Acquisition
Botox maker Allergan is broadening its aesthetics portfolio with the $2.1 billion purchase of Kythera Biopharmaceuticals, a company that produces drugs to battle double chins and male-pattern baldness.
The deal gives the Irish drugmaker access to Kythera’s Kybella (deoxycholic acid) injection, the first and only nonsurgical treatment for double chin. Kythera won FDA approval for Kybella on April 29, and is seeking regulatory approval in Switzerland, Canada and Australia as well.
Allergan says the drug fills a huge unmet need and offers opportunities for cross-selling with Botox and two other facial fillers, Juvederm and Voluma. “There are more than 13 million women sitting on the fence, buttering to be injected and Kybella is going to be a major initiative to try to bring them into the practice,” Allergan President Philippe Schaison said on a Wednesday conference call.
Schaison said the acquisition will allow marketing of Kybella to ramp up much faster than if Kythera were doing it alone, putting the product on a quicker path to peak sales.
Kythera’s drug to prevent baldness in men, setipiprant, is still being developed.
Actavis acquired Allergan earlier this year for $66 billion and took on Allergan’s name for its corporate identity. At the time, annual branded sales were expected to nearly double from Actavis’ current $7.8 billion to $16.6 billion.
Allergan anticipates closing the deal in the third quarter. — John Bechtel