A PYMNTS Company

US: Allergan to pay 19 times company’s worth

By  |  September 21, 2016
US: Allergan to pay 19 times company’s worth

On Tuesday, pharma giant Allergan announced that it struck a deal to buy the California biotech for an upfront payment of $28.35 per share in cash. Furthermore, Allergan said it would pay as much as $49.84 per share in contingent value rights if Tobira, which doesn’t have any approved treatments on the market, meets certain developmental milestones, totaling $1.7 billion.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    The price doesn’t seem too high until it is noted that Tobira’s closing price on Monday was merely $4.74.

    This massive difference is due to Tobira testing a new drug designed to combat a condition known as fatty liver disease. With the rising rate of obesity in the US, Allergan estimates that as many as 5% of all Americans have the disease and this condition may very well “become one of the next epidemic-level chronic diseases we face as a society,” said Allergan CEO Brent Saunders.

    Full Content: Fortune

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.