US biopharma company AbbVie has wrapped up its previously announced $63 billion acquisition of Irish drugmaker Allergan following receipt of all the required approvals from all government authorities and approval from the Irish High Court.
AbbVie acquisition of Allergan, which was announced in June 2019, is said to expand and diversify significantly the former’s revenue base. Furthermore, it is also said to complement the existing leadership positions of the US biopharma company in immunology, with Humira, and recently launched Skyrizi and Rinvoq, and hematologic oncology, with Imbruvica and Venclexta.
Allergan offers new growth opportunities for AbbVie in neuroscience, with Botox Therapeutics, Vraylar, and Ubrelvy, and a global aesthetics business, with well-known brands such as Botox and Juvederm.
According to AbbVie, the diversified on-market portfolio of the combined firms will drive the existing growth platform of the former, with the exclusion of Humira, to nearly $30 billion in revenues in full year 2020, with combined revenues of around $50 billion. It is also said to position AbbVie for improved long-term growth potential, an increasing dividend, and investment in innovation in all its therapeutic categories.
The US biopharma company expects to quickly pay down the incremental debt with its increased operating cash flows.
Richard A. Gonzalez – chairman and CEO of AbbVie said: “We are pleased to reach this important milestone for the Company, its employees, shareholders and the patients we serve.
“Our new Allergan colleagues should be commended for all their efforts, along with those of our own employees, to achieve this turning point for our Company. The new AbbVie will be a well-diversified leader in many important therapeutic categories, with both on-market and pipeline assets, and our financial strength will allow us to continue to invest in innovative science and continue to serve unmet medical needs of patients that rely upon us.”
As per the terms of the deal, shareholders of Allergan will be given 0.8660 AbbVie shares and $120.30 in cash for each share they hold in the Irish pharma company, for a total consideration of $193.23 per share. Allergan’s common stock has stopped trading on the New York Stock Exchange.