Tobira Therapeutics Up 760% Following Allergan Buyout, Liver Drug A Key Focus
Tobira Therapeutics Inc (NASDAQ: TBRA), a clinical-stage bio-pharmaceutical company that focuses on the development of therapies to treat non-alcoholic steatohepatitis (NASH) and other liver diseases, soared higher by more than 760 percent on Tuesday after the company agreed to sell itself to Allergan plc Ordinary Shares (NYSE: AGN).
As part a merger agreement between the two companies, Allergan will acquire Tobira for an upfront payment of $28.35 per share in cash and up to $49.84 per share in Contingent Value Rights (CVRs) which may be payable based on the completion of certain development, regulatory and commercial milestones.
Total consideration for the acquisition could be up to $1.695 billion.
The acquisition will add Cenicriviroc (CVC) and Evogliptin to Allergan's global Gastroenterology R&D pipepline. Allergan also gains from the acquisition Evogliptin, a drug currently undergoing a Phase 1 trial.
"The acquisition of Tobira is a strategic R&D investment within a white space area of our global Gastroenterology franchise and an opportunity to advance the development of novel treatments for NASH," said Brent Saunders, CEO and President of Allergan. "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."
"Both the CVC and Evogliptin programs provide highly differentiated compounds that can make a significant impact in the treatment of NASH, where today there are no approved therapies available for patients," said David Nicholson, Chief Research & Development Officer, Allergan. "Importantly, NASH treatment may well require a multi-therapeutic approach to address the multiple factors of the disease. CVC has been shown in clinical trials to provide significant improvement in liver fibrosis, the hallmark of NASH... Evogliptin, in preclinical models, has been shown to decrease hepatic glucose production, improve hepatic triglyceride content and steatosis, and reduce histologic markers of inflammation of the liver.."
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