As per the deal, Allergan shareholders will receive 0.8660 AbbVie shares and $120.30 in cash for each Allergan share, for a total consideration of $188.24 per Allergan Share.
The deal, which is expected to close early next year, represents approximately 45% premium over Allergan’s closing price on Monday.
Abbvie shares plunged 7.5% immediately following the announcement, while Allergan stock soared 28.5%.
AbbVie expects annual pre-tax synergies and other cost reductions from the deal of at least $2 billion in the third year while leaving investments in key growth franchises untouched.
Immediately following the deal, AbbVie shareholders are expected to have approximately 83% stake in AbbVie on a fully diluted basis, and the rest with Allergan shareholders.
Allergan CEO Brent Saunders said, “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.”
The deal comes at a time the North Chicago, Illinois-based bio-pharmaceutical company is fast approaching the closure of its patent protection for its flagship product Humira. The immunology drug accounts for more than half of Abbvie’s total revenue.
With the acquisition, AbbVie could be looking to establish a strong base in the beauty drugs market.
This is the second massive deal to be announced in the bio-pharma segment this year. On January 3, Bristol-Myers Squibb (NYSE: BMY) said it would acquire its peer Celgene (NASDAQ: CELG) in a $74-billion cash-and-stock deal. However, this deal has been delayed, first due to shareholder opposition, and then due to antitrust concerns.
https://www.youtube.com/watch?v=50yUaLybUnA&t=667s China-based internet search firm Baidu Inc. (NASDAQ: BIDU) reported financial results for the second quarter of 2020 on Thursday after the market's close. Earnings exceeded analysts’ expectations, but the
Applied Materials' (NASDAQ: AMAT) earnings and revenue for the third quarter exceeded the market's views. Adjusted EPS of $1.06 and revenue of $4.40 billion in Q3, grew 43% and 23%,
A lot of stocks in the biotech space have skyrocketed this year after their announcements and advances in finding a vaccine or in the treatment of COVID-19. While these companies