After agreeing to sell its generics business to Teva earlier this year for US$40.5 B, Allergan is on spending spree to strengthen its core therapeutic areas. Allergan entered into an agreement to acquire Vitae Pharmaceuticals at a share price of US$21 per share, a 159% premium of the closing price on September 13th, in an all cash deal worth US$639 M. The key drivers of the deal are Vitae’s assets, VTP-43742, a Phase II retinoic acid receptor-related orphan receptor gamma (RORγt) inhibitor for treatment of psoriasis, and VTP-38543, a Phase II LXRβ agonist for the treatment of atopic dermatitis. With this deal, Allergan will be hoping to bolster its dermatology pipeline with innovative clinical stage drugs and a novel drug discovery platform.