Say what? Allergan just agreed to pay a 6X cash premium for Tobira and its troubled PhIII NASH drug
A couple of months after a trial setback crushed Tobira’s share price, Allergan $AGN has swooped in to buy the company for $29.35 a share and up to $49.84 a share in contingent value rights if its late-stage NASH drug turns out to be a hit.
That cash price is more than six times what Tobira’s battered stock $TBRA closed at yesterday, a virtually unheard of premium in a market that is already applying high values to biotech assets. The total value for the company will range up to $1.7 billion. The company stock traded for $4.74 at the close yesterday, with a market cap of $89 million.
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