Botox-maker Allergan is bulking up its drug pipeline with two acquisitions announced Tuesday, both of which target liver disease.
Allergan PLC said it's acquiring Tobira Therapeutics Inc. 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, or NASH, a disease that triggers inflammation that can lead to cirrhosis, cancer and eventual liver failure.
Allergan said 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 Dublin-based Allergan slipped nearly 3 percent, or $6.62, to $238.67. Shares in Tobira, which is based in South San Francisco, California, closed at $4.74 Monday before soaring more than 720 percent to ending Tuesday at $38.91.
After the market closed, Allergan said it was buying Akarna Therapeutics, a privately held company based in San Diego that focuses on treatments for inflammatory and fibriotic diseases.
Allergan will make an upfront payment of $50 million for Akarna and pay additional unspecified milestone payments.
Akarna's lead development product, AKN-083, which is being tested as a treatment for NASH, is "highly complementary" to the compounds that Tobira is developing, Allergan said.