Allergan to acquire Vitae Pharmaceuticals for $639M

Dublin, Ireland-based Allergan will purchase Fort Washington, Pa.-based clinical-stage biotechnology company Vitae Pharmaceuticals for $639 million, twice its market value, according to The Wall Street Journal.

The acquisition is part of an effort to strengthen Allergan's skin care division, according to the report.

The purchasing price values Vitae at $21 a share, compared with the company's closing price of $8.10 per share on Tuesday, according to the report. Shares of Vitae spiked to $20.93 in premarket trading Wednesday, and Allergan shares rose 0.8 percent.

Under the deal, Allergan will acquire a drug currently in mid-stage trials that is designed to treat psoriasis, a disease that causes itchy dry skin patches, and other autoimmune disorders, according to the report.

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