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Tuesday, June 25, 2019

Allergan (AGN) to be acquired by AbbVie (ABBV) for ~$188.24/sh

  
  • The deal for the Botox maker comes as AbbVie eyes the end of patent protection for Humira, the world's best-selling drug.
  • News of the possible deal comes a day after Bristol-Myers Squibb Co. agreed to divest one of Celgene Corp.’s most lucrative drugs in order to close their planned $74 billion combination. Japan’s Takeda Pharmaceutical Co. earlier this year completed a $62 billion takeover of Shire Plc.
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Allergan confirms deal to be acquired by AbbVie (ABBV) for approximately $63 bln, or ~$188.24 per share in cash & stock 
(Bloomberg) -- AbbVie Inc. agreed to buy rival drugmaker Allergan Plc for $63 billion in a deal combining the makers of arthritis drug Humira and wrinkle treatment Botox in a bid to kindle growth.
The takeover, at a value of $188.24 a share, is a 45% premium to Allergan’s closing price on Monday. Allergan rose 33 percent to $172 in pre-market trading in the U.S. early Tuesday.
AbbVie has been looking for ways to reinvigorate its pipeline of experimental drugs as Humira, the best-selling medicine in the world, faces competition from cheaper biosimilars. Allergan, which makes Botox, has been considering a split.
The deal comes as drugmakers seek greater scale as they seek innovative new treatments for cancer and other diseases, which require massive investments to develop but can yield greater payoffs. Meanwhile, pricing of many drugs has come under political pressure in the U.S.
News of the possible deal comes a day after Bristol-Myers Squibb Co. agreed to divest one of Celgene Corp.’s most lucrative drugs in order to close their planned $74 billion combination. Japan’s Takeda Pharmaceutical Co. earlier this year completed a $62 billion takeover of Shire Plc.
Allergan holders will receive 0.8660 AbbVie shares and $120.30 in cash for each share they hold. The combination will create a company with annual revenue of about $48 billion operating in 175 countries with an industry-leading pipeline of drugs in development, said Brent Saunders, Allergan's chief executive officer.
Under pressure from investors to restructure its business, Allergan said earlier in June that it would make a decision in the next two months on whether to split off some of its assets.

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