Tobira Therapeutics, a clinical-stage biopharmaceutical company focused on the development and commercialization of novel treatments for liver and immuno-inflammatory diseases, has merged with Regado Biosciences. Tobira raised $40 million of common stock from a combination of new investors and all current Tobira institutional investors, including the previously announced $13 million in debt that converted to common stock in this closing. Together with approximately $33 million net cash on Regado's balance sheet, the combined company has approximately $70 million in cash to advance clinical development of first-in-class dual CCR2/CCR5 inhibitor cenicriviroc (CVC), which is being evaluated in the phase IIb CENTAUR clinical trial for the treatment of patients with non-alcoholic steatohepatitis (NASH) and liver fibrosis.
Regado changed its name to Tobira Therapeutics and effected a nine for one reverse stock split.
"The completion of the merger marks a significant milestone for Tobira as we debut on the public markets backed by an attractive group of highly regarded investors who support our pursuit to develop cenicriviroc as a platform for unserved indications in liver and immuno-inflammatory diseases," said Laurent Fischer, M.D., CEO of Tobira. "Our lead development program of CVC in NASH is fully funded into the second half of 2017, more than one year past the expected primary endpoint in the second quarter of 2016. The upsized financing will enable us to accelerate that program with the ORION study in NAFLD, conduct studies looking at CVC in combination with other therapies for NASH, and potentially start development of CVC in a third indication in 2016."
The holders of shares of Tobira common stock outstanding immediately prior to the merger received 1.4302 shares of Regado common stock in exchange for each share of Tobira common stock in the merger. All Regado shares will be subject to the nine for one reverse stock split. No fractional shares are being issued in connection with the reverse stock split. Instead, cash will be issued in lieu of fractions of shares.
Following the financing, the reverse stock split and the merger, the combined company has approximately 17.4 million shares outstanding.
The combined company will operate under the leadership of Fischer, Tobira's CEO. The board of directors of the combined company is comprised of nine representatives: Dennis Podlesak, chairman, Fischer, Carol Brosgart, M.D., Jeffrey Cooper, Andrew Fromkin, Patrick Heron, Pierre Legault, Gwen Melincoff and Eckard Weber, M.D., the founder of Tobira. The corporate headquarters is located in South San Francisco, Calif.