Allergan To Buy Tobira In Deal Valued At Up To $1.7 Billion

Allergan Plc said Tuesday it has agreed to acquire Tobira Therapeutics Inc. in a deal valued at up to $1.7 billion. Allergan will pay $28.35 per Tobira share upfront, and up to $49.84 per share in contingent value rights, that are payable on the meeting of certain milestones. Tobira is focused on developing and commercializing treatments for non-alcoholic steatohepatitis (NASH) and other liver diseases. "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," Allergan Chief Executive Brent Saunders said in a statement. The deal is expected to close by year-end. Tobira shares were halted permarket for the news, while Allergan shares were not yet active. Allergan stock has shed 22% in the year so far, while the S&P 500 has gained 4.7%.