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Why Did Tobira Therapeutics (TBRA) Stock Skyrocket 720% Today?

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On Tuesday, shares of Tobira Therapeutics Inc. TBRA skyrocketed, up over 720% in late-afternoon trading after the company announced it would be acquired by Allergan in a deal worth up to $1.7 billion.

Allergan is set to acquire Tobira for an upfront payment of $28.35 per share in cash, and up to $49.84 per share in Contingent Value Rights (CVRs) in the case of any successful completion of certain commercial, development, and regulatory milestones.

"With this acquisition, Allergan will now have one of the strongest portfolios of development stage programs for the treatment of NASH, with Cenicriviroc as the cornerstone. We will continue to look for differentiated development-stage assets that can bolster this position and enhance our commitment to innovation in this disease," Allergan CEO Brent Sanders said in a statement announcing the deal.

The acquisition will add Cenicriviroc (CVC) and Evogliptin to Allergan's portfolio, which are two differentiated, complementary development programs for the treatment of non-alcoholic steatohepatitis (NASH).

"I am extremely excited to see Tobira and Allergan come together," said Laurent Fischer, M.D., Chief Executive Officer, Tobira Therapeutics. "The combination of our team's innovation in the NASH space and the infrastructure, development expertise and world-class ability of Allergan to market medicines will enable us to more rapidly develop and commercialize needed medications for patients suffering from NASH and other serious fibrotic diseases around the world."

Tobira is a clinical-stage biopharmaceutical company that focuses on developing and commercializing therapies for NASH and other liver diseases. Investors can expect the transaction to close at the end of 2016.

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