Biotech Investors Look for Next Jackpot After Tobira (TBRA) Acquired at up to a 1650% Premium
- S&P little changed as energy weighs but financials edge up
- Nestle Said Examining Takeover of Mead Johnson (MJN) - Source
- Fed's Yellen says 'makes sense' to gradually raise interest rates
- UPDATE: Fed Beige Book: Wages gain modestly in most areas amid tight job market
- Mallinckrodt (MNK) Announces FTC Settlement
Get access to the best calls on Wall Street with StreetInsider.com's Ratings Insider Elite. Get your Free Trial here.
Biotech investors are used to wild swings in stocks they own but even the stomach-hardened group were aflutter this morning after Allergan (NYSE: AGN) continued its post generic-sale buying spree by acquiring tiny NASH company Tobira Therapeutics (NASDAQ: TBRA) for up to a 1650% premium.
Closing a $4.74 per share on Monday, Allergan agreed 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) that may be payable based on the successful completion of certain development, regulatory and commercial milestones, for a total potential consideration of up to $1.695 billion.
The news sent shares of Tobira rocketing 708% to $38.11 at last check.
Needless to say, the news has everyone searching for the next small-cap biotech jackpot. This was exacerbated by word that Allergan was competing with another party for Tobira; meaning another buyer could be lurking and ready to pounce.
Three small-cap NASH stocks are already seeing big symphony buying as a result: Galmed Pharmaceuticals (NASDAQ: GLMD) +31.5%, Conatus Pharmaceuticals (NASDAQ: CNAT) +23.2%, Galectin Therapeutics (NASDAQ: GALT) +15.6%.
Intercept Pharmaceuticals (NASDAQ: ICPT), perhaps the best-known and biggest NASH stock, is up 5.3%.
One sell-side analyst, who had a 'Buy' rating on Tobira into today's news, told StreetInsider that while GLMD, CNAT, GALT are all up in sympathy, their NASH assets are much earlier in stage to warrant a serious look. In a year or two this might change, he said.
He doesn't see ICPT as the next target given the mixed data out for 2 years now.
Other stocks with assets in NASH include:
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Alphabet (GOOGL) Buys Twitter (TWTR) Unit Fabric
- Eli Lilly (LLY) to Acquire CoLucid Pharmaceuticals (CLCD) for $960M
- UPDATE: Yellen Says Fed Close to Dual Goals, Can't Give Timing of Next Hike
Create E-mail Alert Related CategoriesAnalyst Comments, Insiders' Blog, Rumors, Trader Talk
Related EntitiesDefinitive Agreement
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!