Regado and Tobira to merge to create leading NASH company

The USA’s Regado Biosciences (Nasdaq: RGDO) and privately-held Tobira Therapeutics have entered into a definitive agreement under which Tobira will merge with a wholly-owned subsidiary of Regado in an all-stock transaction. The news sent Regado’s shares 45.4% higher to $1.25 in early trading this morning.

The merger will create a company focused on the development of novel treatments for liver and inflammatory diseases. Tobira's lead product, immunomodulator and anti-fibrotic agent cenicriviroc (CVC), received Fast Track designation and is currently in a Phase IIb trial in non-alcoholic steatohepatitis (NASH).

Last year, Regado announced the permanent termination of enrollment in its REGULATE-PCI Phase III trial for its lead program, Revolixys Kit, its lead product candidate. The decision was based on a recommendation from the trial's Data and Safety Monitoring Board (DSMB) and following a clinical hold on the study by the Food and Drug Administration.