Tobira Therapeutics, the US-based pharmaceutical company that withdrew its initial public offering in August 2014, plans to merge with a subsidiary of US-based cardiovascular drug developer Regado Biosciences.
Tobira is working on treatments for liver disease, HIV, fibrosis and inflammation, and has raised $62m in funding from backers including pharmaceutical firm Novo, which holds a 17% stake, Domain Associates, Frazier Healthcare Associates, Canaan Partners and Montreux Equity Partners.
The company intended to raise up to $60m in an IPO last year but withdrew after several other drug developers floated below their respective ranges.
Regado raised $47m from a September 2013 IPO, but had to cut its share price from a $14-$16 range to $4.00 in the process, and its stock is currently priced at $1.01.
The proposed all-share deal with Regado would involve Regado’s shareholders taking a 32% stake in the merged company, which would operate under the name of Tobira.
Tobira’s investors, including Novo, have agreed to invest $22m in the new entity, which will focus on CVC, Tobira’s candidate drug for non-alcoholic steatohepatitis (NASH), a liver disease currently without an approved treatment.
Michael Metzger, chief executive of Regado, said: “We expect Tobira to be the next breakout company in NASH based on the best-in-class profile and potential of their lead drug CVC.
“The merged company will derive a significant advantage from the extensive clinical, commercial and transactional expertise of the combined board and management teams.”