September 13, 2016
By Alex Keown, BioSpace.com Breaking News Staff
DUBLIN – Shares of Vitae Pharmaceuticals have skyrocketed more than 158 percent after Allergan struck a $639 million deal to acquire the Pennsylvania-based company and its experimental oral psoriasis treatment, VTP-43742 and other dermatological products.
Brent Saunders, president and chief executive officer of Allergan, said the deal adds “strength and depth” to the company’s dermatology franchise.
“Vitae has pioneered the discovery and development of highly differentiated first-in-class compounds in atopic dermatitis, psoriasis and autoimmune diseases, areas of medicine where innovation is needed for patients,” Saunders said in a statement.
Shares of Vitae jumped from Tuesday’s close of $8.10 to $20.92 per share this morning. Shares of Allergan have also increased to $246.16 this morning.
Allergan, the maker of Botox, anticipates closing the transaction by the end of 2016. Allergan has more than 70 drugs in mid- to late-stage drug trials and is looking at up to 14 drug approvals this year, with 16 filings for approval.
VTP-43742, a Phase II first-in-class, is an orally active ROR?t (retinoic acid receptor-related orphan receptor gamma) inhibitor for the potential treatment of psoriasis and other autoimmune disorders. VTP-43742 acts through the potent inhibition of IL-17 activity. In preclinical studies, VTP-43742 has been observed to inhibit ROR?t activity, is highly selective versus other ROR isotypes and may provide a treatment that could be administered as a once-daily oral dose.
In addition to the psoriasis treatment, Allergan will also gain VTP-38543, a topical LXRß (Liver X Receptor beta) selective agonist for the potential treatment of atopic dermatitis. VTP-38543 is currently in a Phase IIa proof-of-concept clinical trial assessing the safety, tolerability and efficacy in patients with mild to moderate atopic dermatitis.
Vitae’s Contour structure-based drug design platform is used to discover product candidates for therapeutic targets where biopharmaceutical research and development has traditionally struggled to develop drugs due to challenges related to potency, selectivity and pharmacokinetics.
Jeff Hatfield, president and CEO of Vitae, said his company’s portfolio will benefit from Allergan’s expertise in “developing and commercializing innovative dermatologic treatments.”
In the wake of Allergan’s merger with Pfizer falling apart earlier this year, the Irish company has been aggressive in its M&A activities. Earlier this month, the company struck a $60 million upfront deal to acquire gene therapy company RetroSense Therapeutics. In August, the company bagged the Bay Area’s ForSight Vision5 to gain that company’s glaucoma product. In April, Allergan acquired Boston-based Topokine Therapeutics and its lead product, XAF5, a first-in-class topical agent to treat steatoblepharon, better known as bags under the eyes. One day after the Pfizer deal fell through, Allergan entered into an agreement with Heptares Therapeutics for exclusive global rights to a portfolio of novel subtype-selective muscarinic receptor agonists for the treatment of several neurological disorders, including Alzheimer’s disease.
