NEW YORK (TheStreet) -- Shares of Kythera Biopharmaceuticals (KYTH) were soaring, sharply up 22.05% to $74.11 in early market trading Wednesday, after the company announced it is being acquired by Allergan Plc (AGN) in a cash-and-stock deal for about $2.1 billion, or $75 per share.
TheStreet's Jim Cramer, Portfolio Manager of theAction 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 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.
Agoura Hills, Calif.-based KYTHERA Biopharmaceuticals is a clinical-stage biopharmaceutical company engaged in the discovery, development and commercialization of prescription products for the aesthetic medicine market.
The company's initial focus is on the facial aesthetics market.
Insight from TheStreet's Research Team:
Jim Cramer, Portfolio Manager of Action Alerts PLUS and Jack Mohr, Director of Research mentioned Kythera in a recent post. Here is a snippet of what Jim Cramer and Jack Mohr had to say about the stock: