Allergan to buy pharma firm in $639m buyout

Billy Bambrough
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Allergan's Botox is one of the pharma firm's biggest products (Source: Getty)

Irish pharma firm Allergan is buying psoriasis and autoimmune treatment developer Vitae Pharmaceuticals for $639m (£484m) in cash as it hopes to expand its dermatology division – best known for its Botox treatment.

Allergan and US rival Pfizer have been on buying sprees since the US treasury stepped on their proposed tax inversion tie-up.

Brent Saunders chief executive and president of Allergan said:

The acquisition of Vitae is a strategic investment for Allergan that adds strength and depth to our innovative medical dermatology franchise.

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 is paying $21 per share, with Vitae shares trading around $8 before the deal was announced.