Strange bedfellows

13 February 2017 By Robert Cyran Follow @rob_cyran

The drug company is paying $2.5 bln for Zeltiq and its diet-avoiding, fat-freezing tech. It sounds a wackier play than the dozen deals Allergan struck last year. But vain customers pay cold cash for the treatment, making it less speculative than other deals, like gene therapy.

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Allergan said on Feb. 13 that it has agreed to buy Zeltiq Aesthetics for $2.48 billion, or $56.50 per share, in cash. Zeltiq produces a non-invasive alternative to liposuction, where selected tissue is cooled and fat cells naturally die. The price is a 14 percent premium to where Zeltiq shares closed on Feb. 10 and a 35 percent premium to the price of Zeltiq shares one month ago.

Allergan already markets Kybella, a drug which reduces fat under the chin. The company estimates that what it calls "body contouring" is a $4 billion-a-year market opportunity, and growing.

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Strange bedfellows

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