Jim Cramer -- Let's Face It, Allergan's Kythera Acquisition Is 'Brilliant'

NEW YORK (TheStreet) -- It was one week ago that shares of Kythera Biopharmaceuticals (KYTH) shot higher despite canceling its presentation at a conference hosted by Goldman Sachs. 

At the time, TheStreet's Jim Cramer, co-portfolio manager of the Action Alerts PLUS portfolio, attributed the rise to speculation about a potential takeout of the company

Today came the answer. On Wednesday's CNBC "Mad Dash" segment, Cramer praised Allergan (AGN), the maker of Botox, as "brilliant" after announcing it will buy Kythera for $2.1 billion. Kythera's shares, at $74, are up 22.5% on the news. Allergan shares, at close to $300, are up a fraction.

Allergan -- an AAP holding and formerly known as Actavis until it bought Allergan and took its name -- now has "facial domination," Cramer said, including treatments ranging from Botox to eyelashes. With Kythera, Allergan is now able to non-surgically correct the double chin.

KYTH Chart
Kythera Biopharmaceutical KYTH data by YCharts

The price tag wasn't too hefty either, with the acquisition becoming accretive in 2017 after breaking even in 2016, which is not all that far away, Cramer said. 

It's "ridiculous" that shares of Allergan aren't higher on this announcement, he added. Investors should give it some time because "it will be up," Cramer concluded.

At the time of publication, Cramer's Action Alerts PLUS had a position in AGN.

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