“We are excited to be working with Allergan, a company that shares our vision to develop the best possible treatments for NASH”, said Raju Mohan, Ph.D., founder and chief executive officer, Akarna Therapeutics. Allergan changed its dealmaking strategy following the collapse of its planned $160 billion merger with Pfizer Inc.
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Allergan could also pay up to $49.84 per share in contingent value rights, if certain treatments and drugs hit development expectations.
Tobira’s stock surged 715 percent to $38.63 in afternoon trading, while Allergan’s was down 2.6 percent at $238.84.
NASH is the most extreme form of nonalcoholic fatty liver disease and can progress to cirrhosis, liver cancer and eventual liver failure.
On August 8, Allergan bought Menlo Park, California-based ForSight VISIONS, a clinical-stage biotech company, for an upfront payment of $95 million and an undisclosed launch payment. Allergan, through the first six months, had revenue of $7.08 billion but lost $246 million amid acquisition-related charges, asset sales, write-downs and other items.
On Tuesday, shares of Tobira Therapeutics Inc.
The company called the two acquisitions “stepping stones” that will “allow it to springboard” into a leadership role in the space during a conference call Wednesday with analysts. Tobira is focused on developing and commercializing treatments for non-alcoholic steatohepatitis (NASH) and other liver diseases.
Shares of Tobira surged 727% to $39.20 in morning trading in NY, while Allergan shares fell 2.1% to $240.10.
“The science in NASH is breaking now and this could become one of Allergan’s largest categories” of medicines, Nicholson said.
Allergan will pay $533 million in up-front costs to acquire Tobira, which represents a almost 500 percent premium to its closing price the day before the deal was announced. The disease, affecting more than 15 million Americans, is closely linked to obesity.
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Mark Marmur, an Allergan spokesman, said the company had no plans Tuesday to announce a third NASH deal. Plus, in early September, Allergan purchased ophthalmology gene-therapy firm RetroSense Therapeutics LLC for $60 million to boost its eye-care suite. A week ago, the company announced the $639-million acquisition of Vitae Pharmaceuticals to strengthen its dermatology pipeline.
