Allergan on M&A prowl again, bidding up to $1.7 billion for Tobira

In what will be its sixth M&A deal this year, Ireland-incorporated Allergan (NYSE: AGN) has announced yet another acquisition agreement, this one with US clinical-stage biotech company Tobira Therapeutics (Nasdaq: TBRA), a developer of therapies for non-alcoholic steatohepatitis (NASH) and other liver diseases

In premarket trading, shares of Tobira surged to $31.85 per share, a 572% increase from Monday's close. Shares of Allergan were down slightly (-0.3%) to $244.50 following the news.

The companies announced that they have entered into a definitive agreement under which Allergan will 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 Boards of Directors of both companies have unanimously approved the transaction.