Allergan (AGN) is on A Major Buying Spree... And It's Just Getting Started

September 20, 2016 4:46 PM EDT

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Allergan (NYSE: AGN) is wasting little time spending the $29 billion in net cash proceeds it received from the generics sale to Teva. The company has announced four deals since the start of September, including two in the last 12 hours:

  • 09/06 - Allergan plc (NYSE: AGN) agreed to acquire RetroSense Therapeutics LLC, a private, clinical-stage biotechnology company focused on novel gene therapy approaches to restore vision in patients suffering from blindness for $60 million upfront payment +milestones
  • 09/14 - Allergan plc (NYSE: AGN) agreed to acquire Vitae Pharmaceuticals, Inc. (Nasdaq: VTAE) for $21.00 per share, in cash, for a total transaction value of approximately $639 million. The acquisition will strengthen Allergan's dermatology product pipeline, with the addition of VTP-43742, a Phase 2 first-in-class, orally active RORĪ³t (retinoic acid receptor-related orphan receptor gamma) inhibitor for the potential treatment of psoriasis and other autoimmune disorders.
  • 09/20 - Allergan plc (NYSE: AGN) agreed to acquire Tobira Therapeutics, Inc. (NASDAQ: TBRA) for an upfront payment of $28.35 per share, in cash, and up to $49.84 per share in Contingent Value Rights (CVRs). Total potential consideration is up to $1.695 billion. Tobira is a clinical-stage biopharmaceutical company focused on developing and commercializing therapies for non-alcoholic steatohepatitis (NASH) and other liver diseases.
  • 09/20 - Allergan (NYSE: AGN) agreed to acquire Akarna Therapeutics Ltd., a privately held biopharmaceutical company focused on developing novel small molecule therapeutics that target inflammatory and fibrotic diseases, for an up-front payment of $50 million plus milestones.

The total dollar amount of these recently announced deals (including full CVRs) adds up to potentially ~$2.5 billion, leaving a war chest of at least $26.5 billion.

While all of Allergan's recently announced deals have been small bolt-on ones, other pharma companies know that Allergan is a big buyer in the room, which could bid up prices for many deals. Also, notably two of the deals focused on NASH.

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