Allergan plc Ordinary Shares (NYSE:AGN) announced today that it had entered an agreement to acquire Vitae Pharmaceuticals Inc (NASDAQ:VTAE), a clinical-stage biotech company, for $21 per share in cash for a total consideration of about $639 million.

In light of the deal, Mizuho top analyst Irina Koffler anticipates the stock “to edge higher over time,” and therefore, reiterates a Buy rating on AGN with a price target of $305, which represents just under a 24% increase from where the shares last closed. From Koffler’s perspective, the deal is certainly promising, and could result in “significant potential longer-term upside.”

Presently, Koffler does not anticipate either of VTAE’s early stage medical dermatology assets, VTP-43742, a once-daily oral drug for the potential treatment of psoriasis and other autoimmune disorders, and VTP-38543, a twice-daily topical agent designed to treat atopic dermatitis, will be ready to launch any time before 2020.

“These are two areas with significant unmet need in medical dermatology and success of either asset may represent a >$1B opportunity, and a great way to leverage the company’s strong presence in cosmetic dermatology. We are not adding risk-adjusted revenues to our model at this time since we think neither of these drugs would launch before 2020. Additionally, there is clinical risk to both at this early stage (we especially watch for tolerability of the atopic dermatitis drug, which may be used in children),” she concludes.

As usual, we like to include the analyst’s track record when reporting on new analyst notes to give a perspective on the effect it has on stock performance. According to TipRanks, top five-star analyst Irina Koffler has achieved a high ranking of #29 out of 4,163 analysts. Koffler upholds a 56% success rate and yields 21.9% in her annual returns. However, when recommending AGN, Koffler loses 12.3% in average profits on the stock.

TipRanks analytics demonstrate AGN as a Strong Buy. Based on 14 analysts polled in the last 3 months, 13 rate a Buy on AGN, while 1 maintains a Hold. The consensus price target stands at $297.92, marking a nearly 21% upside from where the stock is currently trading.