Allergan plc is acquiring Vitae Pharmaceuticals, Inc., a clinical-stage biotechnology company.

The move will serve to bolster Allergan’s medical dermatology pipeline, with the addition of VTP-43742, a Phase 2 first-in-class, orally active ROR?t (retinoic acid receptor-related orphan receptor gamma) inhibitor for the potential treatment of psoriasis and other autoimmune disorders.

Allergan will acquire Vitae for $21.00 per share, in cash, for a total transaction value of approximately $639 million. The Boards of Directors of both companies have unanimously approved the transaction.

In the wake of this deal, Bloomberg analysts are predicting that other dermatology companies like Dermira and Foamix Pharma may move. Pfizer bought Anacor for its atopic dermatitis therapy, crisaborole, earlier this year.

About Vitae’s Pipeline

Vitae’s VTP-43742 inhibits 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. The compound recently completed a Phase 2 proof-of-concept multiple ascending dose trial in patients with moderate to severe psoriasis.

The acquisition also adds VTP-38543, a topical LXRß (Liver X Receptor beta) selective agonist for the potential treatment of atopic dermatitis. It is believed that VTP-38543 works by decreasing inflammation in damaged skin tissue and repairing the damaged outer layer of skin. VTP-38543 is currently in a Phase 2a proof-of-concept clinical trial assessing the safety, tolerability and efficacy in patients with mild to moderate atopic dermatitis.

Vitae developed and utilizes its Contour^® structure-based drug design platform to discover product candidates for validated therapeutic targets where biopharmaceutical research and development has traditionally struggled to develop drugs due to challenges related to potency, selectivity and pharmacokinetics.