Allergan to Buy Tobira Therapeutics i...
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Sep
22
Sandeep Singh Dhillon
Allergan to Buy Tobira Therapeutics in $1.7 Billion Deal – WSJ
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Allergan PLC on Tuesday said it agreed to acquire Tobira Therapeutics Inc., a biopharmaceutical company that develops therapies for liver diseases, in a deal worth as much as $1.7 billion, or 19 times Tobira’s previous market value.

Tobira focuses on products that treat nonalcoholic steatohepatitis, or NASH, a common liver disease associated with obesity and type-2 diabetes. NASH occurs when the accumulation of liver fat is accompanied by inflammation and cellular damage, and it can lead to scarring of the liver and progress to cirrhosis, liver cancer and eventual liver failure.

“NASH is set to become one of the next epidemic-level chronic diseases we face as a society,” Allergan Chief Executive Brent Saunders said in prepared remarks, citing the increasing rates of diabetes and obesity. NASH has no approved treatments available, the company said, and affects 5% of the U.S. population.

Separately on Tuesday, Allergan said it further bolstered its NASH pipeline by purchasing privately held biopharmaceutical company Akarna Therapeutics Ltd. for $50 million, plus potential milestone payments that weren’t disclosed.

As for the Tobira deal, Allergan will make an upfront payment of $28.35 a share in cash, approximately six times Tobira’s closing price Monday of $4.74 a share. Tobira holders also will each receive one contingent value right to receive as much as $49.84 a share linked to certain development and regulatory milestones.

Shares of Tobira surged 721% to $38.91 in trading Tuesday, while Allergan shares fell 2.7% to $238.67. Tobira now has a market value of about $725 million, up from $89.2 million on Monday.



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