Allergan (AGN) has announced that it will acquire two different companies. The first company that Allergan has agreed to purchase is Tobira Therapeutics (TBRA). The acquisition caused Tobira stock to jump 720% on Tuesday, gaining 34.17 points.
The acquisition will allow Allergan to bolster the company’s therapies for liver disease.
The acquisition, valued at as much as $1.7 billion, was 19 times the company’s market value. This figure has likely changed, as Tobira stock rallied.
Tobira focuses on therapies for liver disease that is not alcohol-related. Treatments also include liver disease caused by type-2 diabetes and obesity. The company suggests that nonalcoholic steatohepatitis (NASH) is an epidemic that society is going to face, as obesity and diabetes are on the rise.
There are currently no treatments available for NASH.
NASH is a result of inflammation and cellular damage of the liver along with the accumulation of liver fat. Scarring also occurs in the liver, which can progress to cirrhosis and a host of other liver issues, such as cancer and liver failure.
Allergan will pay $28.35 a share for Akama stock, with further conditions that could send the payments as high as $49.84 a share.
Allergan also announced that the company will be purchasing Akama Therapeutics. Akama will receive $50 million from Allergan and is a privately-held company. Akama has offices in the UK and US, and the company’s main focus is also on NASH.
The company has a drug that is in the preclinical phase.
Human studies for Akama’s drug to combat NASH are expected to begin in early 2017.
Allergan has also agreed to further payments in the acquisition of Akama based on certain, undisclosed milestones.
NASH, having no treatment and affecting 5% of the US population, is one of the key areas of focus for Allergan moving forward. The two acquisitions in the span of a day show Allergan’s commitment to treating NASH.
