Allergan to acquire derma firm Vicept for up to $275 million

US drugmaker Allergan (NYSE: AGN) has entered into a definitive agreement for to acquire all of the outstanding shares and assets of the privately-held dermatology company Vicept Therapeutics, aimed at expanding its offering in this therapy segment, in which Allergan’s biggest products is Botox (onabotulinumtoxin A).

The deal, expected to close in the third quarter of this year, includes a $75 million cash up-front payment by Allergan plus up to an aggregate of $200 million in payments contingent on achieving certain future development and regulatory milestones plus additional payments contingent upon acquired products achieving certain sales milestones.

Founded in 2009 and backed by Vivo Ventures, Fidelity Biosciences and Sofinnova Ventures, Vicept’s lead investigational product, V-101, is a topical cream for the treatment of the erythema (redness) associated with rosacea that has achieved positive results in two randomized, placebo-controlled Phase II studies. Last summer the company received $16 million in venture capital funding to support the development of V-101.