Allergan’s acquisition of Kythera Biopharmaceuticals expands the company’s footprint of the facial treatment space, CNBC’s Jim Cramersaid Wednesday.
“This is about facial domination,” Cramer said on “Squawk on the Street.” “They own the forehead [with] Botox; they own the eyelashes with Latisse; they own the jaw area with Juvederm, and now they own the double chin.”
Allergan’s deal is worth $2.1 billion, or $75 per share and will be in cash and stock. Kythera’s shares closed Tuesday’s session at $60.72.
“[The price makes sense] because this is the only company that will really be synergistic,” Cramer said.
Kythera’s shares surged by 22 percent Wednesday morning, while Allergan’s stock rose about 1 percent.