Pharma BD Deal Intelligence

Allergan plc / Tobira Therapeutics, Inc.

2016 · Acquisition/Merger · $1.7B · Complete

A $1.7B acquisition for a NASH drug that had already flunked its Phase 2b primary endpoint before the deal even closed. Cenicriviroc's Phase 3 follow-up failed too—no statistically significant benefit over placebo—leaving Allergan (later absorbed into AbbVie) with zero revenue from the asset.

WRONG BY 27 POINTS

Allergan paid ~$1.7B for a NASH drug that had already flunked its Phase IIb primary endpoint two months earlier — and it went on to fail Phase III too, generating zero revenue.

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The coverage arc

Sep 20, 2016 Allergan/Tobira 8-K Exhibit 99.2 Joint Press Release Bullish

Allergan to acquire Tobira, adding global rights to cenicriviroc and evogliptin and positioning the company in a leading R&D position in NASH, expected to…

Sep 21, 2016 TheStreet Bullish

Controversy over Allergan's 500% premium for Tobira looks overdone; Allergan likely has access to upcoming Phase IIb NASH data the Street had not seen, and the…

Apr 13, 2023 Clinical Gastroenterology and Hepatology Bearish

AURORA Phase 3 confirmed cenicriviroc lacked efficacy on fibrosis improvement vs placebo at 12 months, ending the dual CCR2/CCR5 thesis in NASH.

Source summaries from our enrichment pipeline; follow links for originals.

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Allergan agreed to acquire Tobira Therapeutics for $28.35/share cash upfront plus up to $49.84/share in CVRs tied to development, regulatory, and commercial milestones (~$1.695B total potential). Adds Phase 3-ready cenicriviroc (dual CCR2/CCR5 antagonist) and evogliptin to Allergan's GI/NASH pipeline. Tender offer expired October 31, 2016. Cenicriviroc later failed Phase 3 AURORA in 2020.

Did it work? Outcome assessment

Allergan paid ~$1.7B for a NASH drug that had already flunked its Phase IIb primary endpoint two months earlier — and it went on to fail Phase III too, generating zero revenue.

Strategic verdict
Failed to Achieve
Financial impact
Impaired/Written Down
Allergan acquired Tobira in 2016 for ~$28.35/share cash (~$533M upfront) plus contingent value rights worth up to ~$49.84/share, totaling up to ~$1.7B if milestones hit. The lead asset cenicriviroc's pivotal AURORA Phase 3 trial was halted for futility in 2021, meaning the milestone/CVR thresholds were not achieved and the acquired R&D value was effectively written off. AbbVie (which acquired Allergan in 2020) did not break out a discrete cenicriviroc impairment figure.
Pipeline outcome
Assets Terminated
Cenicriviroc (CVC), the CCR2/CCR5 antagonist that was the cornerstone of the deal, had its Phase 3 AURORA NASH/liver-fibrosis trial terminated early in early 2021 for lack of efficacy following a planned interim analysis of Part 1. No approved product resulted; the NASH program was abandoned.

Key facts

Disease & market context

Non-Alcoholic Steatohepatitis (NASH/MASH) with Fibrosis

Disease Overview

NASH (now MASH) is the progressive inflammatory form of fatty liver disease, affecting an estimated 3-12 million US adults and driven by obesity, type-2 diabetes, and metabolic syndrome. Without intervention it advances through fibrosis to cirrhosis, making it a fast-rising cause of liver transplantation.

Competitive Landscape

When Allergan acquired Tobira in September 2016 for ~$1.695B, NASH was the most-hyped metabolic disease space in pharma, with Intercept's obeticholic acid (REGENERATE), Genfit's elafibranor (RESOLVE-IT), and Gilead's selonsertib (STELLAR) all racing toward Phase 3. Cenicriviroc (CVC), a dual CCR2/CCR5 antagonist with antifibrotic mechanism, had read out a positive Phase 2b CENTAUR study and was the only late-stage immunomodulatory option. The Phase 3 AURORA trial enrolled ~2,000 patients but was terminated for futility in 2020-202100273-2/fulltext). Every late-stage NASH program from that era ultimately failed: obeticholic acid (FDA CRL 2020 and 2023), elafibranor (FDA CRL 2024 in NASH; later approved for PBC), selonsertib, aramchol. The space was finally cracked by Madrigal's Rezdiffra (resmetirom, FDA-approved March 2024) — the first MASH therapy. The Tobira deal is now a textbook NASH-cycle write-down, contributing to AbbVie's later impairment charges after acquiring Allergan in 2020.

Related deals — scored

DealYearValueOutcome
Allergan plc / Tobira Therapeutics, Inc. (this deal)2016$1.7B17
Allergan plc / Merck & Co., Inc. (CGRP receptor antagonist program)2015$250M91
Allergan plc / SkinMedica, Inc.2012$375M55
Allergan plc / Inamed Corporation2005$3.2B50
Allergan plc / Oculeve, Inc.2015$250M33
Allergan plc / Zeltiq Aesthetics, Inc.2017$2.5B32
Allergan plc / Kythera Biopharmaceuticals, Inc.2015$2.1B23

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