Deal Spree Continues as Allergan (AGN) Inks $2.47 Billion Deal for This Bay Area Biotech
2/13/2017 6:20:27 AM
February 13, 2017
By Mark Terry, BioSpace.com Breaking News Staff
Dublin-based Allergan (AGN) acquired Pleasanton, Calif.-based Zeltiq Aesthetics (ZLTQ) for $2.475 billion today.
Zeltiq fits well into Allergan’s medical aesthetics portfolio. Zeltiq’s flagship product is CoolSculpting System, an FDA-cleared system that reduces unwanted fat using a patented cooling technology. It is considered a non-invasive alternative to liposuction. Its uses are more for “mild improvements” compared to liposuction.
“The acquisition of Zeltiq is highly complementary and strategic to Allergan,” Brent Saunders, Allergan’s chairman and chief executive officer, said in a statement. “By adding the best-in-class body contouring COolSculpting System to our best-in-class facial aesthetics, plastic surgery and regenerative medicine offerings we are creating a world-class aesthetics business. With CoolSculpting, our offerings to plastic surgeons, dermatologists and aesthetic practitioners will now extend to three of the largest and fastest-growing segments of their practices, putting Allergan in a unique position to provide expanded customer service, and help meet the needs of patients.”
The deal is for $56.50 per share, or $2.475 billion. Body contouring is believed to be a $4 billion market.
Allergan has been involved in numerous acquisitions over the last year. In December, it acquired Acelity’s LifeCell, which manufactures and markets products for breast reconstruction and soft tissue repair. Allergan already has a big aesthetics business, with Botox, line fillers, implants and eye care.
In September, Allergan acquired San Francisco’s Tobira Therapeutics (TBRA) for up to $1.695 million. In April, only a day after Pfizer (PFE)’s attempted merger with Allergan collapsed, Allergan signed a deal with Heptares, a wholly-owned subsidiary of Sosei Group Corporation. Allergan paid Heptares $125 million up front for exclusive global rights to its portfolio of novel subtype-selective muscarinic receptor agonists to treat various neurological disorders, including Alzheimer’s disease.
On April 21, Allergan acquired Topokine Therapeutics for an upfront payment of $85 million and various milestone payments. And on August 3, not long after it completed the generics sale to Teva, Allergan announced it was also selling Teva (TEVA) its Anda distribution business for $500 million.
On August 8, Allergan bought Menlo Park, Calif-based ForSight VISIONS for an upfront payment of $95 million and an undisclosed launch payment. On September 14, Allergan acquired Fort Washington, Penn.-based Vitae Pharmaceuticals (VTAE) for $21 per share in cash, a transaction value of about $639 million.
All told, Allergan made 12 deals in 2016. Saunders referred to Allergan’s acquisition strategy as made up of “stepping stones.”
Mark Foley, chief executive officer of Zeltiq, said in a statement, “Allergan’s world-class medical aesthetics product, global footprint, history and commitment to developing best-in-class aesthetic treatments makes the Company ideally suited to realize the maximum commercial potential of the Zeltiq controlled-cooling technology platforms. I appreciate the unwavering commitment and dedication of the Zeltiq team in building a world-class Company and technology platform with CoolSculpting. We look forward to working with Allergan to ensure successful completion of this transaction, and supporting the ongoing success of the CoolSculpting technology in the U.S. and around the world.”
Allergan stock is currently trading for $246.36.
Zeltiq stock is listed at $49.40, but trading was halted at news of the sale.
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