Biotech Investors Look for Next Jackpot After Tobira (TBRA) Acquired at up to a 1650% Premium
- Top 10 News for 12/2: Crude Rips on OPEC Cut; Starbucks' Schultz Steps Down; Nonfarm Payrolls Flat in Nov.
- Unemployment Rate Drops to 4.6%
- Bond yields slip on U.S. jobs data, euro steady before Italy vote
- Alibaba (BABA) Founder Jack Ma Discuss Plans to Retire; 'I Don't Want to Die at the Office'
- Starbucks Coffee (SBUX) CEO Howard Schultz to Step Down, Appointed Executive Chairman; Kevin Johnson New CEO
Find out which companies are about to raise their dividend well before the news hits the Street with StreetInsider.com's Dividend Insider Elite. Sign-up for a 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
- Pandora (P) Advisers Said to Begin Reaching Out to Possible Suitors Following Approach from Sirius (SIRI) - Bloomberg
- Pandora (P) calls active on wide price movement
- Saudi Central bank System said to be hit by Iranian malware - Bloomberg
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!