NEW YORK (TheStreet) -- Shares of Allergan Plc (AGN) may trade higher after the company announced it is buying Kythera Biopharmaceuticals (KYTH) in a cash-and-stock deal for about $2.1 billion, or $75 per share.
TheStreet's Jim Cramer, Portfolio Manager of the Action Alerts PLUS Charitable Trust Portfolio says, "This is BRILLIANT! Allergan CEO Brent Saunders now owns 'the face' - the most important asset in the world!"
With the acquisition,Allergan plans to expand its line of cosmetic treatments.
Allergan will gain access to Kybella, Kythera's first and only approved non-surgical treatment to reduce fat under the chin.
The equity value of the deal is about $1.94 billion, according to Thomson Reuters.
Kythera shareholders will get 80% of the purchase price in cash, and 20% in new Allergan shares. The deal must be approved by Kythera shareholders.
Allergan stock closed at $298.02 yesterday.
Allergan is a global pharmaceutical company that made wrinkle treatment Botox. The company is focused on developing, manufacturing and commercializing branded pharmaceuticals, generic and over-the-counter medicines, and biologic products.
Insight from TheStreet's Research Team:
Jim Cramer, Portfolio Manager of Action Alerts PLUS and Jack Mohr, Director of Research mentioned Allergan in a recent post. Here is a snippet of what Jim Cramer and Jack Mohr had to say about the stock:
We believe this is a genius deal for Allergan, which this week officially changed its name from Actavis. KYTH is known for having the first and only approved non-surgical treatment for contouring moderate to severe submental fullness, a.k.a. double chin, with its drug Kybella. This perfectly complements the Allergan name, which is known for the famous anti-wrinkle injection Botox, as the company now owns the most important piece of human real estate -- the face -- through its various treatments directed toward the forehead, eyes, mouth and now the chin.