The pharma sector continues to be a hotbed for M&A activity. As evidence, Botox maker Allergan announced on Wednesday, June 17th that it was acquiring Kythera Biopharmaceuticals for close to $2.1 billion in cash and stock deal.

Kythera

The acquisition will add to Allergan’s product lines for cosmetic facial treatments, especially Kythera’s new double-chin treatment Kybella that was just approved by the U.S. Food and Drug Administration.

The $2.1 billion cash and stock deal must still be approved by Kythera shareholders and government regulators, and is anticipated to finalize in the third quarter of this year.

Statement from Allergan CEO

“The acquisition of Kythera is a strategic investment that strengthens our leading global position in aesthetics and continues to position us for long-term growth,” Brent Saunders, the Allergan president and chief executive, noted on Wednesday in a statement regarding the acquisition.

More on Allergan’s buyout of Kythera

The proposed deal calls for Allergan to pay $75 per Kythera share, or around $2.1 billion. Kythera shareholders would receive about 80% of the purchase price in cash and the remaining 20% in Allergan shares.

Of note, the deal price of $75 per share is a premium of 23.5% to Kythera’s closing price on Tuesday.

Kythera’s shares rose more than 25% to around $75 in trading on Wednesday, just shy of Allergan’s offer price.

Allergan also noted that it anticipated the Kythera acquisition to start adding to earning per share after 2016.

Kythera is headquartered in Westlake Village, California, and was founded in 2005. The firm specializes in the aesthetic medicine market, and is most well-known its treatment for its non-surgical treatment for submental fullness (double chin). Keep in mind the firm has has not produced any revenue from product sales to date, but it has generated revenue through licensing agreements. The company reported a net loss of $135.6 million in 2014.

Also of note, Dublin-based Allergan posted revenue of $13.1 billion in 2014.