Tobira Therapeutics, a US-based biopharmaceutical company backed by pharmaceutical firm Novo, closed a merger with US-based, Nasdaq-listed cardiovascular drug developer Regado Biosciences on Monday, raising $40m in the process.
The funding came from undisclosed new investors, as well as all of Tobira’s existing backers.
Tobira had previously raised approximately $62m from investors including Novo, which held a 17% stake in the company prior to the merger, Domain Associates, Frazier Healthcare Associates, Canaan Partners and Montreux Equity Partners.
Founded in 2006, Tobira is developing drugs to treat disorders including liver disease, HIV, fibrosis and inflammation. It filed for a $60m initial public offering in June 2014, only to withdraw the application two months later.
Regado had raised $47m in its own IPO the previous year but its stock subsequently plummeted from $4.00 to around $1.00.
The merger will provide Tobira with an alternative path to the public markets while the newly formed company, known as Tobira Therapeutics, saw its stock close at $12.72 yesterday.
The $40m, consisting of $27m in equity funding and $13m of converted debt, will be combined with $33m of cash on Regado’s balance sheet to advance CVC, a Tobira-developed drug for non-alcoholic steatohepatitis and liver fibrosis that is currently in Phase 2b trials.