AbbVie: Allergan acquisition for $63 billion will merge Humira and Botox makers

AbbVie: Allergan acquisition for $63 billion will merge Humira and Botox makers

Shares of AbbVie are down 16% over the past year and shares of Allergan, with sales growth down over the past three quarters, have fallen 24%.

Wilbur went on to state that AbbVie's expected role as "the key R&D decision maker" could present several advantages, including "accelerated investment behind Botox therapeutics as well as simply better pipeline decision making than what Allergan management has demonstrated in the past".

The combination could solve those problems for AbbVie Inc., based in North Chicago, Illinois, and Allergan, which is based in Dublin on paper but operates from headquarters in Madison, New Jersey. Last year, Humira generated $13.7 billion in US sales, 42% of revenue.

Allergan shareholders will receive 0.8660 AbbVie shares and $120.30 in cash for each share held, for a total consideration of $188.24 per Allergan share, a premium of 45% to the stock's Monday close.

But the AbbVie Allergan deal isn't just a story about health care consolidation - it's one about the state of innovation among big, legacy biopharma companies scurrying to find ways to plug future holes in their revenue streams. AbbVie's main areas of expertise are immunology, oncology, virology and neuroscience. Allergan rose 33 percent to US$172 in pre-market trading in the USA early Tuesday. AbbVie CEO Gonzalez will continue as CEO through Humira's loss of patent exclusivity in 2023, it added.

"Humira is buying the assets that replace it over the long term", said Gonzalez, who will lead the combined company and remain chairman and chief executive through 2023. Two Allergan board members will join AbbVie's board, including Allergan CEO Brent Saunders.

Other analysts say the Allergan deal looks more like a cosmetic fix than a long-term solution.

Fast forward to Tuesday, where AbbVie's intraday move wiped out as much as $18.4 billion in market value, more than the value ascribed to all but nine companies in the closely-watched Nasdaq Biotech Index.

"It's very unlikely we'll see a Botox biosimilar for a long, long time, if ever", he said on Tuesday of Allergan's efforts to protect the product. Bristol-Myers recently said the deal might not close until next year.

Related Articles

  • The Baseline Player of the Week: Andy Murray

    The Baseline Player of the Week: Andy Murray

    Lopez came out triumphant after another two hours and 49 minutes of combat. "I'm so happy to have this man playing with me". The three time Grand Slam singles champion said he felt "as well as I did there, not flawless in terms of my movement".
    New Zealand On Top, India Third

    New Zealand On Top, India Third

    Sri Lanka's total of 232-9 did not appear to leave England , yet to win the World Cup, with an especially stiff chase on Friday. What works in England's favour is that nobody else can win six matches in a row, so this keeps the home team in the green zone.
    Woman terrified after 'waking up alone on dark plane'

    Woman terrified after 'waking up alone on dark plane'

    The carrier is looking into how staff did not spot passenger Tiffani Adams who was then left on board after the plane landed. Adams woke "around midnight (few hours after flight landed) freezing cold still trapped in my seat in complete darkness".
  • Harry Potter: Wizards Unite now available in 130 countries

    Harry Potter: Wizards Unite now available in 130 countries

    At the article's time of writing, the game was ranked 102 for the USA iPhone earning charts and ranked 48 in the United Kingdom .
    Tom Holland came to aid of distressed fan in NY

    Tom Holland came to aid of distressed fan in NY

    Taking to Instagram , Samuel shared a snapshot of two incorrectly printed posters placed side-by-side. Hopefully, cinemagoers will get to see Fury wearing the eyepatch on the right, or correct, eye.
    Man must pay ex $15M after winning lottery during divorce, arbitrator rules

    Man must pay ex $15M after winning lottery during divorce, arbitrator rules

    When his divorce was finalized in 2018, an appeals court said he'd have to split the money with his now-ex-wife. Court documents showed the former couple marrying in 2004 and having three children.
  • Woman hands husband's guns over to police, gets arrested for theft

    Woman hands husband's guns over to police, gets arrested for theft

    Police said Torres shot and killed her stepfather, believed to be in his early 50s, as well as her own 8-year-old daughter. An arrest affidavit revealed the couple had finished a divorce hearing on June 14 when they got into an argument.
    Reason why Cam Newton was flying coach back from France revealed

    Reason why Cam Newton was flying coach back from France revealed

    Newton was sharing photos in Paris for much of last week, including Instagram pictures at the Louvre and Paris Fashion Week. Neither Newton's personal rep nor his team, the Carolina Panthers, responded to PEOPLE's requests for comment.
    ID? Airport security asks Deepika Padukone

    ID? Airport security asks Deepika Padukone

    She is one of the highest-paid actresses in the industry and is the recipient of several awards, including three Filmfare Awards. The Mastani then walked back to the guard, digging her ID from her handbag to show it before entering the airport.
  • Fellow Brazilians Coutinho And Arthur Want Neymar Back At Barcelona

    Fellow Brazilians Coutinho And Arthur Want Neymar Back At Barcelona

    Asked which Premier League club would suit Neymar best, Rivaldo said: "Liverpool, Manchester United , Manchester City ". Argentina and Barcelona superstar Lionel Messi has been voted the greatest player in the history of football.
    Murray wins doubles title in return from hip surgery

    Murray wins doubles title in return from hip surgery

    That moment of inspirational play boosted them and they sealed the set 7-5. "This is really insane ", he said. However, he was broken and the defending champions went on to win the tie-break.
    Opposition Victory in Istanbul Challenges Turkish President's Authority

    Opposition Victory in Istanbul Challenges Turkish President's Authority

    The country's largest city has always been governed by Erdogan's Justice and Development Party (AK Party). The ruling party still controls 25 of Istanbul's 39 districts and a majority in the municipal assembly.