Allergan Plc stated on Tuesday that it will be acquiring Tobira Therapeutics Inc (NASDAQ:TBRA) for $1.7 billion, this is approximately 19 times the original market value for Tobira. Allergan will be liable for $533 million in up-front costs in order to acquire Tobira.
This acquisition will be the largest announced premium that has been recorded for BiPharma at almost 500 percent premium to its closing price the day before the deal was announced. In addition to this premium, there is still a possibility of $49.84 per share that is paid out on condition that certain pre-evaluated milestones are met.
Future Possible Acquisitions That Allergan May Make
Allergan’s purchase of Tobira Therapeutics is the neither a start nor end of the company’s acquisition list, the company has announced that it do intend to purchase further enterprises in order to meet their goals.
Additional to Tobira, Allergan has also acquired 4 additional companies this year, two of which focus on treating eye disorders, namely: Access Plans Inc (OTCBB:APNC) ForSight Vision as well as Retrosense Therapeutics. The last two have a primary focus on dermatology and areTopokine Therapeutics, as well as Vitae Pharmaceuticals Inc (NASDAQ:VTAE).
Although Brent Saunders; CEO of Allergan, has declined to comment on potential future acquisitions, there has been speculation that there are enterprises, which would make logical investments for the company.
These enterprises include: Intra-Cellular Therapies Inc (NASDAQ:ITCI), Acadia Pharmaceuticals Inc (NASDAQ:ACAD), Neurocrine Biosciences, Inc. (NASDAQ:NBIX) as well as DermiraInc (NASDAQ:DERM).
The Reasoning Behind The Acquisitions For Allergan
Saunders announced his intent to develop and expand Allergan’s central nervous system franchise, which already is, one of the largest in the industry. This franchise includes the treatment of diseases such as migraines and schizophrenia, depression, and Alzheimer’s.
Saunders declared that one of the main ambitious goals for Allergan is a consecutive 10 percent profit margin growth in the years ahead. Through the development of Allergan products, markets and the enterprise itself, Saunders stated that he intends to achieve this goal.
In addition to this, it was announced that Allergan would be working on a deal to further its ophthalmic products, as well as develop potential opportunities in both eye care and dermatology.
Although, Allergan already has a flagship drug in dermatology called Botox, one of the world’s leading sales franchises in the industry.