AbbVie acquisition of Allergan : US biopharma company AbbVie is all set to acquire Botox developer Allergan, an Irish pharma company, for $63 billion in a cash cum stock deal, as per pharma acquisition news.
Headquartered in Chicago, AbbVie is engaged in developing drugs in areas such as immunology, oncology, neuroscience, and virology. On the other hand, Allergan, which is based in Dublin, is engaged in the development, manufacturing, and commercialization of branded pharmaceutical, biologic, device, surgical and regenerative medicine products.
The Irish pharma company primarily focuses on medical aesthetics, central nervous system, eye care, and gastroenterology. Allergan has employees and commercial operations in nearly 100 countries.
AbbVie acquisition of Allergan is expected to give immediate scale and profitability to the growth platform of the US biopharma company with the exclusion of Humira. Furthermore, it will significantly grow and diversify the revenue base of AbbVie with new therapeutic areas, which includes the medical aesthetics business of the Irish pharma company.
Richard A. Gonzalez – chairman and CEO of AbbVie, commenting on AbbVie acquisition of Allergan, said: “This is a transformational transaction for both companies and achieves unique and complementary strategic objectives.
“The combination of AbbVie and Allergan increases our ability to continue to deliver on our mission to patients and shareholders. With our enhanced growth platform to fuel industry-leading growth, this strategy allows us to diversify AbbVie’s business while sustaining our focus on innovative science and the advancement of our industry-leading pipeline well into the future.”
As per terms of AbbVie acquisition of Allergan, shareholders of the Irish pharma company will exchange each of their shares for 0.8660 AbbVie shares and $120.30 in cash. The transaction values each share of Allergan at $188.24.
Following the completion of AbbVie acquisition of Allergan, existing shareholders of the US biopharma company will hold a stake of nearly 83% in the enlarged company with the remaining stake of 17% to be held by the Irish biopharma company. The combined company will operate as AbbVie and will continue to be incorporated in Delaware.
Brent Saunders – chairman and CEO of Allergan, commenting on AbbVie acquisition of Allergan, said: “This acquisition creates compelling value for Allergan’s stakeholders, including our customers, patients and shareholders. With 2019 annual combined revenue of approximately $48 billion, scale in more than 175 countries, an industry-leading R&D pipeline and robust cash flows, our combined company will have the opportunity to make even bigger contributions to global health than either can alone.
“Our fast-growing therapeutic areas, including our world class medical aesthetics, eye care, CNS and gastrointestinal businesses, will enhance AbbVie’s strong growth platform and create substantial value for shareholders of both companies.”
AbbVie acquisition of Allergan, which is subject to certain regulatory approval and shareholders’ approval of the Irish pharma company, is likely to be wrapped up by early 2020.
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