Botox-maker Allergan is bulking up its drug pipeline by acquiring Tobira Therapeutics and two potential liver disease treatments in a deal that could be worth almost $1.7 billion.
Tobira is testing two treatments for non-alcoholic steatohepatitis, a disease that triggers inflammation that can lead to cirrhosis, cancer and eventual liver failure.
Allergan Plc said Tuesday it will pay $28.35 in cash up front for each Tobira share plus up to $49.84 in contingent value rights, depending on whether certain development, regulatory and commercial milestones are met.
Shares of Allergan slipped more than 2 percent, or $5.48, to $239.81 early Tuesday. Tobira shares closed at $4.74 Monday before soaring more than 600 percent to $36.17 after the deal was announced.