Allergan Agrees to Buy Tobira Therapeutics in $1.7 Billion Deal
20 September 2016 - 11:50PM
Dow Jones News
Allergan PLC agreed to acquire Tobira Therapeutics Inc., a
biopharmaceutical company that develops therapies for liver
diseases, in a deal the companies said potentially is worth roughly
$1.7 billion.
Allergan will make an upfront payment of $28.35 a share in cash,
a high premium to Tobira's Monday closing price of $4.74 a share.
Tobira holders also will receive one contingent value right to
receive as much as $49.84 a share linked to certain development and
regulatory milestones.
Tobira's shares surged to $32.75 in recent premarket
trading.
With the deal, expected to close by year's end, Allergan gains
Tobira's lead product candidate cenicriviroc for the treatment of
nonalcoholic steatohepatitis, or NASH, a common liver disease
associated with obesity and type-2 diabetes. Allergan also will
gain another investigational NASH treatment, evogliptin, which is
in early phase studies.
"With the increasing rates of diabetes, obesity and other
metabolic conditions in the U.S. and in developed nations globally,
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.
Both investigational treatments can make a significant impact in
treating NASH, a disease that has no approved treatments available,
Allergan chief research-and-development officer, David Nicholson,
said in prepared remarks.
Write to Tess Stynes at tess.stynes@wsj.com
(END) Dow Jones Newswires
September 20, 2016 09:35 ET (13:35 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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