Economy

AbbVie to buy Botox maker Allergan in $63 billion deal

AbbVie to buy Botox maker Allergan in $63 billion deal”

AbbVie is facing the expiration of patent protection for Humira, which brought in a staggering $20 billion in sales past year.

Put another way: "AbbVie has near-term growth but faces a cliff, or more like a canyon, problem with the loss of Humira to [generic] biosimilars in the USA beginning mid-2023 while Allergan... has struggled to generate growth but doesn't face any key near-term exclusivity loss", wrote Raymond James analyst Elliot Wilbur in a research note. AbbVie said Tuesday it will pay $120.30 in cash and a portion of its stock for each Allergan share.

AbbVie Chairman and CEO Richard Gonzalez told analysts Tuesday that the deal essentially involves Humira "buying the assets that replace it over the long term".

Allergan remains an industry leader in aesthetics, and is likely to be the cornerstone of AbbVie's valuation, SVB Leerink analyst Geoffrey Porges said in a note. Two Allergan board members will join AbbVie's board, including Allergan CEO Brent Saunders.

Investors have also questioned Saunders' growth plans beyond acquisitions and the quality of the company's drug pipeline. Allergan rose 33 percent to US$172 in pre-market trading in the USA early Tuesday.

More news: Thai soccer team marks anniversary of cave ordeal with lunge

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 deal, which comes months after Bristol-Myers Squibb Co agreed to buy Celgene Corp in a $74 billion transaction, will redomicile Dublin-based Allergan to the United States. Including debt, the deal values Allergan at $83 billion.

AbbVie's offer price is a far cry from Pfizer's all-stock offer for Allergan that valued the Ireland-based drugmaker at $363.63 per share in 2015.

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.

Gonzalez said AbbVie examined Allergan's portfolio "product by product" and was particularly impressed with the job Allergan has done with Botox.



Like this

loading...
loading...

Latest


25 June 2019
Hannah Green wins WPGA Championship to make Australian golf history
Reavie, the 2008 Canadian Open victor , finished at 17-under 263 at TPC River Highlands a week after tying for third in the U.S. In doing so, Korda registered her best finish in a major championship and her second career top-10 in a major (T-10, 2018 U.S.

25 June 2019
Love Island: Arabella’s arrival signals trouble for Danny and Yewande
Yewande, who lives in Dublin, added: "I'd probably say there are only two genuine couples; Michael and Amber and Curtis and Amy ". I've only ever been loyal in one relationship which was my last relationship. "Right so this is all an absolute madness for me".

25 June 2019
Tom Holland Says His Workout With Jake Gyllenhaal Got Really Competitive Fast
Following the events of Avengers: Endgame , Spider-Man must step up to take on new threats in a world that has changed forever. Spider-Man: Far From Home is that film, but a lot of people may be wondering why.

25 June 2019
Migrant children returned to detention center denounced as "inhumane" by independent monitors
Binford said she saw no windows in the "warehouse" she visited and that children reported they don't go outside often. Most of the children were originally removed from the facility after word spread of the dire conditions.

25 June 2019
England v Australia, 2019 ICC Cricket World Cup
England opener Jason Roy has been ruled out for their highly anticipated World Cup clash against Australia here on Tuesday. Australia: Finch (capt), Warner, Khawaja, Smith, Maxwell, Stoinis, Carey (wkt), Behrendorff, Cummins, Starc, Lyon.

25 June 2019
Eto'o - 'Barcelona would be better fit for Salah'
Eto'o was critical of the host nation's lack of cohesion in attack and felt they overburdened star player Mohamed Salah . Former Chelsea and Everton forward Samuel Eto'o has urged Mohamed Salah to leave Liverpool and join Barcelona .

25 June 2019
Capello: Juventus unbeatable with De Ligt
However with PSG and Juventus ready to throw the big bucks at de Ligt, it remains to be seen which club he will eventually join. Juventus are reportedly looking to secure a deal for De Ligt in the region of £60m, but Ajax are holding out for a fee of £75m.

25 June 2019
U.S. sanctions Iran supreme leader; plans to designate foreign minister
Washington and Tehran dispute the location of the drone when it was shot down by an Iranian surface-to-air missile last week. They bar USA companies from trading with Iran, but also with foreign firms or countries that are dealing with Iran.

25 June 2019
James Jordan slammed after branding Love Island Maura 'easy' over Tom feud
One wrote: "Michael's face trying to shut Tom up is priceless", while another added: 'Danny and Michael trying to warn Tom like'. Maura Higgins has won herself a legion of fans after sticking up for herself on Sunday night's Love Island .

25 June 2019
USA billionaires call for new 'wealth tax' to fight climate change
That prompted President Barack Obama to propose a minimum tax on millionaires' incomes that became known as the " Buffett rule ". The ultra-rich Americans signed a letter addressed to all 2020 presidential candidates that was published on Monday .