Here we go again yet another brilliant acquisition from Allergan, which Jim Cramer refers to as the takeover artist formerly known as Actavis.
Actavis changed its name recently after it made a massive purchase last year of Allergan. The new Allergan is led by CEO Brent Saunders, who has afforded his company the ability to grow tremendously over the years by making a series of very smart acquisitions.
On Wednesday morning, investors learned that Saunders did yet another deal, purchasing Kythera Biopharmaceuticals for $2.1 billion, or $75 a share, which is a 25 percent premium to where it closed on Tuesday.
Allergan already had the wrinkle product Botox and Latisse for eyelashes, and now with Kythera it will have a non-surgical injection product that helps to remove double chins. It officially dominates the face, the most important piece of real estate on the planet!
The company expects to break even on the Kythera deal next year, and then become additive to earnings in 2017.
"Honestly, I think Allergan's stock should have rallied on the news, rather than doing next to nothing and then actually going down slightly like it did today," Cramer said.