Pharma BD Deal Intelligence

Allergan plc / Vitae Pharmaceuticals, Inc.

2016 · Acquisition/Merger · $639M · Complete

WRONG BY 68 POINTS

A $621M bet on two Phase 2 dermatology assets that both flopped — Allergan wrote off $522M (84% of deal value) within 18 months of close.

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Ranks computed across 828 graded deals (Critic + Outcome Score both present).

The coverage arc

Sep 14, 2016 Fierce Biotech (Ben Adams) Neutral

Vitae traded at around $8 a share before the announcement; Allergan's $21-a-share cash offer represents a premium of roughly 160% as it further expands its…

Sep 14, 2016 Pharmaceutical Technology Neutral

Pharmaceutical Technology reported the $639M deal at $21/share with neutral framing — noting both lead assets were Phase 2 stage and the platform value rested…

Sep 15, 2016 Drug Discovery & Development Neutral

Factual trade coverage reproducing executive framing: both the VTP-43742 and VTP-38543 programs 'offer the potential for highly differentiated mechanisms of…

Source summaries from our enrichment pipeline; follow links for originals.

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Allergan acquired Vitae Pharmaceuticals for $21.00/share, ~$639M total. Adds first-in-class oral RORgammaT inhibitor VTP-43742 (psoriasis) and topical LXRbeta agonist VTP-38543 (atopic dermatitis) plus Vitae's Contour drug discovery platform to Allergan's medical dermatology pipeline. Closed October 25, 2016.

Did it work? Outcome assessment

A $621M bet on two Phase 2 dermatology assets that both flopped — Allergan wrote off $522M (84% of deal value) within 18 months of close.

Strategic verdict
Failed to Achieve
Pipeline outcome
Mixed

Key facts

Related deals — scored

DealYearValueOutcome
Allergan plc / Vitae Pharmaceuticals, Inc. (this deal)2016$639M13
Allergan plc / Merck & Co., Inc. (CGRP receptor antagonist program)2015$250M91
Allergan plc / SkinMedica, Inc.2012$375M55
Allergan plc / Inamed Corporation2005$3.2B50
Allergan plc / Oculeve, Inc.2015$250M33
Allergan plc / Zeltiq Aesthetics, Inc.2017$2.5B32
Allergan plc / Kythera Biopharmaceuticals, Inc.2015$2.1B23

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