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news.US-based AbbVie has signed an agreement to acquire Irish pharmaceutical firm Allergan in a deal valued at around $63bn (£49.4bn).
Image: Allergan office in Westport, Ireland. (Credit: Allergan)
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As per terms of the deal, Allergan shareholders will secure 0.8660 AbbVie shares and $120.30 (£94.8) in cash for each Allergan share. The total consideration will be $188.24 (£148.46) per Allergan share, which represents a 45% premium to the closing price of Allergan’s shares on 24 June 2019.
Upon completion of the transaction, AbbVie shareholders will hold around 83% of AbbVie on a fully diluted basis, while Allergan shareholders will own around 17% of AbbVie on a fully diluted basis.
AbbVie chairman and CEO Richard Gonzalez said: “The combination of AbbVie and Allerganincreasesour 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.”
Subject to certain regulatory approval and Allergan’s shareholders’ nod, the transaction is expected to be completed by early 2020.
Following the closing of the deal, AbbVie will continue to be incorporated in Delaware as AbbVie Inc. and maintains its principal executive offices in North Chicago.
Allergan chairman and CEO Brent Saunders said: “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.”
The combined firm will include major franchises with leadership positions across immunology, haematologic oncology, medical aesthetics, neuroscience, women’s health, eye care and virology.
Based in Dublin, Allergan is involved in the development, manufacturing and commercialisation of branded pharmaceutical, device, biologic, surgical and regenerative medicine products.
The firm’s brands and products mainly focus on four major areas such as medical aesthetics, eye care, central nervous system and gastroenterology. The company has employees and commercial operations in around 100 countries.
AbbVie is a biopharmaceutical firm that mainly provides treatments across four primary therapeutic areas, including immunology, oncology, virology and neuroscience.
