Party time

20 September 2016 By Robert Cyran Follow @rob_cyran

Following the giant sale of its generic drugs arm, the Dublin-based company is back on the acquisition trail. It is paying up to $1.7 bln, or a 1,550 pct premium, for liver-disease biotech firm Tobira. Beware the use of money that’s burning a hole in boss Brent Saunders’ pocket.

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Allergan said on Sept. 20 it had agreed to buy Tobira Therapeutics, a biotech firm with a market capitalization of $89 million, for up to $1.7 billion.

Under terms of the deal, Dublin-based Allergan will pay $28.35 a share in cash, and up to $49.84 a share in contingent value rights.

Allergan is obligated to pay an extra $13.68 for each Tobira share if a patient is enrolled in a specifically designed phase 3 trial for the company's treatment of non-alcoholic fatty liver disease before the end of 2028.

It will pay $4.53 a share if a new U.S. drug application for the compound is filed by the end of 2028; $13.56 a share for the first sale in the United States, before the end of 2028; and $18.07 a share if the drug winds up having worldwide sales that exceed $1 billion in four consecutive quarters within the first three years the drug is available.

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