BioCentury
ARTICLE | Company News

Tobira, Allergan deal

September 26, 2016 7:00 AM UTC

Allergan will acquire Tobira for $28.35 per share in upfront cash plus a contingent value right (CVR) worth up to $49.84 per share tied to four development, regulatory and commercial milestones. If all the milestones are met, Tobira shareholders would receive a total of about $1.7 billion, including the upfront payment. The upfront price is a 498% premium to Tobira’s close of $4.74 on Sept. 19, before the deal was announced.

The CVR’s first milestone would reward Tobira’s shareholders with $13.68 if enrollment begins in a planned Phase III trial of cenicriviroc. Tobira said it expects that trial to begin in mid-2017. Tobira shareholders would receive further payouts if Allergan submits an NDA for the therapy to treat non-alcoholic steatohepatitis (NASH), if the drug reaches the market and if annual sales reach $1 billion within a prespecified window. Both boards have approved the deal, which is expected to close by year end. ...