In recent news, Allergan will be purchasing Kythera Biopharmaceuticals for $2.1 billion. With this purchase, Allergan will also be acquiring KYBELLA, a submental fat therapy injection. A leading expert from Frost & Sullivan’s Healthcare & Life Sciences, Barbara Gilmore, comments below on the topic.
According to senior industry analyst Barbara Gilmore:
“Allergan is firing on all cylinders. Allergan, the company behind Botox, acquired Kythera, a small specialty biotech company focused on the development of high-value prescription drugs for the aesthetic market, for $2.1B.”
“Kythera’s ATX-101, a non-surgical injectable for the treatment of adults with moderate-to-severe submental fat below the chin, was approved by the FDA on April 29, 2015. ATX-101 is the first and only FDA-approved drug for submental contouring, in an aesthetic injectable market estimated to be worth $1.7B by 2017.”
“Both dermatology and aesthetic medicine are key areas of focus for Allergan, so the fit is natural for both companies. Kythera brings a leadership team with experience in the strategic commercialization of Botox Cosmetic, JUVEDERM and Latisse. While Allergan’s strategy is successful at a time when most major pharmaceutical companies are scrambling to recover from patent cliff income collapse. Allergan has invested in a small niche markets while maintaining a strong broad patent portfolio on its products.”