PHARMACY

AbbVie to acquire Allergan in $63B deal

BY Sandra Levy

AbbVie and Allergan announced today that the companies have entered into a definitive transaction agreement under which AbbVie will acquire Allergan in a cash and stock transaction for a transaction equity value of approximately $63 billion, based on the closing price of AbbVie’s common stock of $78.45 on June 24.

“This is a transformational transaction for both companies and achieves unique and complementary strategic objectives,” AbbVie chairman and CEO Richard Gonzalez said, adding, “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.”\

The combined company will consist of several franchises with leadership positions across immunology, hematologic oncology, medical aesthetics, neuroscience, women’s health, eye care and virology, the companies 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,” said Brent Saunders, Allergan chairman and CEO.

Saunders added, “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’s enhanced growth platform is expected to grow at a high-single-digit annual growth rate well into the next decade, from more than $30 billion in 2020, according to the company.

Upon completion of the transaction, AbbVie will continue to be incorporated in Delaware as AbbVie Inc. and have its principal executive offices in North Chicago, Ill. AbbVie will continue to be led by Gonzalez as chairman and CEO. Two members of Allergan’s board, including Saunders, will join AbbVie’s board upon completion of the transaction.

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