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AMET works diligently to keep the following information updated with the most current medical aesthetic news.  This information has been supplied by numerous sources. AMET is not affiliated with any such sources, and the information provided does not reflect the views of AMET.  The function of this page is to simply provide information, and AMET does not accept responsibility or liability for any views/claims/rumors/errors that appears herein.  

7/7/2015
Allergan to Buy Kythera Biopharmaceuticals for $2.1 Billion
Allergan, the maker of Botox, said on Wednesday that it would pay about $2.1 billion in cash and shares for Kythera Biopharmaceuticals, which makes a treatment for double chins.
Allergan to Buy Kythera Biopharmaceuticals for $2.1 Billion

Allergan, the maker of Botox, said on Wednesday that it would pay about $2.1 billion in cash and shares for Kythera Biopharmaceuticals, which makes a treatment for double chins.

The deal is expected to expand Allergans product lines for cosmetic facial treatments, particularly by adding Kytheras double-chin treatment, Kybella, which was recently approved for use in the United States by the Food and Drug Administration.

It is the latest in a series of deals in the pharmaceutical sector this year, as drug makers look to strengthen their mix of products through acquisitions.Also on Wednesday, the medical equipment maker Hill-Rom Holdings said it would acquire Welch Allyn, a privately held company that makes diagnostic devices, for $2.05 billion in cash and stock.

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, Brent Saunders, the Allergan president and chief executive, said on Wednesday in a news release.

Under the terms of the deal, Allergan would pay $75 per Kythera share, or about $2.1 billion. Kythera shareholders would receiveabout 80 percent of that in cash and 20 percent in Allergan shares.

The deal is subject to the approval of Kythera shareholders and regulators, and it is expected to close in the third quarter.

Kythera, which is based in Westlake Village, Calif., was founded in 2005 and is focused on the aesthetic medicine market, including its treatment for submental fullness, also known as double chin. The company has not generated revenue from product sales so far, but it has done so through licensing agreements. It reported a net loss of $135.6 million in 2014.

Allergan, which is based in Dublin and has its United States headquarters in Parsippany, N.J., is a pharmaceutical company that provides treatments in dermatology, aesthetics, eye care and for cardiovascular disease. The company posted revenue of $13.1 billion in 2014.

JPMorgan Chase and the law firm Covington & Burling LLP advised Allergan, and Goldman Sachs and the law firm Latham & Watkins advised Kythera.

Separately, Hill-Rom said it would pay $1.625 billion in cash and issue about 8.1 million in shares to acquire Welch Allyn in an effort to enhance its scale.

Hill-Rom, which is based in Chicago, said it expected that the combined company would have about $2.6 billion in revenue and that the deal would enhance the products it offers to health care providers.

This is a significant step in our transformational journey to become a stronger, more diversified organization, John J. Greisch, the Hill-Rom president and chief executive, said in a news release.

Welch Allyn is based in Skaneateles Falls, N.Y., and is owned by about 75 shareholders. After the deal, no single Welch Allyn shareholder would own more than 1 percent of Hill-Rom, the company said.

Goldman Sachs and the law firm Winston & Strawn advised Hill-Rom, and Barclays and the law firm and Cravath, Swaine & Moore advised Welch Allyn.

http://www.nytimes.com/2015/06/18/business/dealboo...

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