Allergan to Buy MAP Pharmaceuticals for $958 Million

Allergan Inc. (AGN) said Tuesday it will buy MAP Pharmaceuticals Inc. (MAPP) in a $958 million deal that would help the Botox maker expand sales of medical treatments.

The cash deal, for $25 a share or a 60% premium, comes after the two companies had agreed to jointly sell a migraine drug called Levadex that MAP had developed and that is awaiting approval from the U.S. Food and Drug Administration.

Although best known for the Botox wrinkle-removing treatment, Allergan also sells prescription drugs and devices for glaucoma and other medical conditions.

The company, which had $5.4 billion in sales last year, has been trying to expand its medical offerings. It has even been seeking medical uses for Botox, most recently for overactive bladders but also for migraines.

If approved, Levadex could complement Botox's use in migraines and allow Allergan sales representatives to sell both products to neurologists.

"One of the key drivers of Allergan's continued success is our focus on medical specialties where we have extensive knowledge of physician and patient needs, and can provide a broad portfolio of products," Chief Executive David Pyott said in a statement.

MAP CEO Timothy Nelson said in the statement the deal reflects the "tremendous progress to date" developing Levadex and the "strong cultural and scientific fit between our companies."

The FDA has said it would decide on Levadex approval by April 15. MAP first sought the drug's approval in May 2011, but then resubmitted the application in October to provide additional data and respond to FDA questions.

Allergan, of Irvine, Calif., said it expects to close the acquisition late in the first quarter or in the second quarter of this year. Allergan said it plans to buy all MAP shares, which amounts to a total value of $958 million.

An Allergan spokeswoman said the company wouldn't comment on whether MAP, of Mountain View, Calif., has any cash on hand until discussing the deal on Wednesday.

Write to Jonathan D. Rockoff at [e-mail]

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