72.15 -6.28 (-8.01%)
Pre-Market: 8:30AM EDT
|Bid||72.50 x 1000|
|Ask||72.25 x 800|
|Day's Range||77.85 - 79.31|
|52 Week Range||73.81 - 100.23|
|Beta (3Y Monthly)||0.94|
|PE Ratio (TTM)||22.34|
|Earnings Date||Jul 25, 2019 - Jul 29, 2019|
|Forward Dividend & Yield||4.28 (5.43%)|
|1y Target Est||90.07|
(Bloomberg) -- AbbVie Inc. has agreed to pay $63 billion for rival drugmaker Allergan Plc, the latest huge merger in a pharmaceutical sector rapidly being reshaped by deals.Allergan will get $188.24 a share in cash and stock, a 45% premium to its closing price on Monday. Allergan shares rose 31% to $170.25 in premarket trading in the U.S. early Tuesday. AbbVie was down 8.2% to $72.The takeover offers a solution to long-standing challenges both companies have grappled with. AbbVie finally gets a set of products big enough to diversify its revenue from Humira, the top-selling rheumatoid arthritis injection that dominates its sales. And Allergan, which is heavily reliant on Botox, will will get a profitable exit for shareholders after a four-year slide. “This is a good alternative for Allergan versus the current share price,” said David Maris, an analyst with Wells Fargo. The expected cost savings from the deal will buy both companies more time, but not solve their long-term issues. Both of their blockbuster drugs have begun to face pressure: AbbVie may be nearing the limits of how far it can raise Humira’s price as cheaper competitors come to market, a problem Allergan is already facing as more rivals to Botox emerge. Neither company has acquired or developed a major new product to replace the sales generated by their biggest hits. Size Scrutiny The deal is evidence that even the world’s biggest drugmakers believe they can get even bigger. In January, Bristol-Myers Squibb Co. announced a $74 billion deal for Celgene Corp., and Japan’s Takeda Pharmaceutical Co. earlier this year completed a $62 billion takeover of Shire Plc. A combined AbbVie and Allergan will have sales of about $48 billion, the companies said in a statement, making it one of the biggest in the industry.The combinations have begun to attract the notice of antitrust authorities. On Monday, Bristol-Myers said it had agreed to divest one of Celgene’s top products, the psoriasis pill Otezla, in order to appease regulators at the U.S. Federal Trade Commission. While there are few major areas of overlap between Allergan and AbbVie, the deal is almost certain to get a careful look from regulators.The deal will also return Allergan to the U.S., at least for tax purposes. While the company is run from New Jersey, it moved its domicile to Dublin in 2015 via another merger, partly to take advantage of lower corporate rates abroad. The 2017 U.S. tax overhaul cut corporate levies to 21% from 35%, which reduced incentives for companies to relocate overseas.AbbVie currently pays far less in tax than that, however, and has said it will have an effective rate of 9% this year. It has projected its effective rate will rise to 13%.Allergan’s OptionsSaunders had spent months turning over plans for Allergan as the drugmaker’s stock price dropped from a 2015 peak of almost $340. Those options included selling off the company’s gastrointestinal drugs or women’s health unit, which would have left it more focused on its profitable medical aesthetics line that includes the wrinkle treatment Botox.AbbVie said it expects at least $2 billion in annual pretax synergies and other cost reductions in year three of the deal. About half of that will come from optimizing the research and early-stage portfolio of products and cuts in overlapping R&D resources, while the rest will come from sales, general and administrative expenses and costs for manufacturing, supply chain and procurement.Allergan holders will receive 0.8660 AbbVie shares and $120.30 in cash for each share they hold. AbbVie will take on Allergan’s debt, which totaled about $24 billion at the end of the first quarter.Two Allergan directors, including Chief Executive Officer Brent Saunders, will join AbbVie’s board after the purchase is completed, according to the statement.The deal is expected to close in early 2020, the companies said.Morgan Stanley & Co. acted as AbbVie’s financial adviser and Kirkland & Ellis LLP and McCann FitzGerald were legal advisers. JPMorgan Chase & Co. was AbbVie’s financial adviser, and Wachtell, Lipton, Rosen & Katz and Arthur Cox gave legal advice.(Updates with analyst comment in fourth paragraph.)\--With assistance from Marthe Fourcade, Liana Baker and Cynthia Koons.To contact the reporter on this story: Drew Armstrong in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Drew Armstrong at email@example.com, Timothy AnnettFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
US drugmaker AbbVie has agreed to buy Allergan, the Irish-domiciled maker of Botox, in a $63bn deal that is the sector’s latest blockbuster transaction driven by the need to replenish drug pipelines. AbbVie ...
AbbVie has been under pressure to diversify its portfolio as Humira, the world's best-selling drug, faces competition from cheaper versions in Europe. Allergan Chief Executive Officer Brent Saunders put together the current version of the company through a series of deals to roll up several pharmaceutical firms in 2014, and has run the company since then. Allergan's shares have lost around half their value since then.
AbbVie will pay $188.24 each in cash and shares for Allergan's outstanding common stock, a 45% premium to the group's Monday closing price, in a deal that would value the Botox maker at around $63 billion. AbbVie said the deal will add around 10% to the group's adjusted earnings in the first year, and will be incorporated in Delaware upon completion. AbbVie's Richard Gonzalez will continue as chairman and Chief executive officer, the company said, and its main headquarters will remain in North Chicago, Illinois.
This morning there is a takeover in the biotechnology sector that may help to liven things up a bit. ABBV is indicated down almost 8% on the news, which is not the reaction they had hoped for, but this should raise some speculation about other potential combinations in the biotechnology sector. Gold has been flying higher and has hit multi-year highs primarily on the weaker dollar.
Shares of drug makers were getting a nice boost in premarket trading Tuesday, after AbbVie Inc.'s deal to buy Allergan PLC for a 45% premium. The SPDR S&P Pharmaceuticals ETF rallied 2.2% ahead of the open. Besides the 31% jump in Allergan's stock, among other shares seeing nice gains in the premarket, Mylan N.V. rose 2.7%, Endo International PLC climbed 4.5%, Theravance Biopharma Inc. hiked up 4.2%, Mallinckrodt PLC tacked on 2.7% and Perrigo Co. PLC gained 2.2%. Meanwhile, Medicines Co.'s stock shed 4.6%, after the company announced late Monday the public offering of $150 million worth of common stock. The pharmaceuticals ETF has lost 7.7% over the past three months through Monday, while the S&P 500 has gained 5.3%.
Biopharmaceutical company AbbVie Inc. (ABBV) has announced it will buy Botox manufacturer Allergan plc (AGN) in a cash and stock deal worth about $63 billion. The transaction value represents a 45% premium to the closing price of AbbVie's shares of $78.45 on Monday. Allergan shareholders are set to receive 0.8660 AbbVie shares and $120.30 in cash for each Allergan share that they hold.
Moody's Investors Service ("Moody's") affirmed the ratings of AbbVie Inc. ("AbbVie") including the Baa2 senior unsecured long-term rating and the Prime-2 short-term rating. This rating action follows the announcement that AbbVie will acquire Allergan plc ("Allergan") in a transaction valued at approximately $63 billion plus debt, to be funded with cash, debt and equity. The acquisition will reduce AbbVie's reliance on Humira, which will face US biosimilar competition in early 2023.
AbbVie Inc. confirmed Tuesday a deal to buy pharmaceutical company Allergan PLC , in a deal with equity value of $63 billion. Allergan's stock soared 30% in premarket trading while AbbVie shares tumbled 9.9%. Under terms of the deal, Allergan shareholders will receive 0.8660 and $120.30 in cash for each Allergan share they own, which based on Monday closing prices values Allergan shares at $188.24 each, a 45.3% premium. Based on 327.8 million shares outstanding as of May 3, the per-share bid represents a market-capitalization for Allergan of $61.71 billion. Earlier Tuesday, The Wall Street Journal had reported AbbVie was near a deal to buy Allergan for $188 a share, or over $60 billion. AbbVie expects the deal to provide annual synergies and other cost reductions of at least $2 billion, and is expected to be 10% accretive to adjusted EPS over the first full year following the close of the deal, which is expected to occur in early 2020. Allergan's stock has dropped 11.5% over the past three months and AbbVie shares have slipped 1.3%, while the S&P 500 has gained 5.3%.
AbbVie Inc said on Tuesday it would buy Botox-maker Allergan Plc in a cash-and-stock deal for about $63 billion to add fast-growing therapeutic businesses such as medical aesthetics and eye care. 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 Allergan's Monday close. AbbVie will continue to be incorporated in Delaware as AbbVie Inc and will be led by Richard Gonzalez as chairman and chief executive officer.
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Shares of Allergan PLC soared 35% toward an 8-month high in premarket trading Tuesday, after The Wall Street Journal reported that AbbVie Inc. was close to a deal to buy the pharmaceutical company. AbbVie's stock dropped 6.0% ahead of the open. The WSJ report said AbbVie would pay $188 in cash and stock for each Allergan share outstanding, which is 45% above Monday's closing price of $129.57. With 327.8 million shares outstanding as of May 3, the deal would value Allergan at about $61.6 billion. AbbVie's market capitalization as of Monday's close was $115.98 billion. Allergan's stock has declined 24.3% over the past 12 months through Monday and AbbVie shares have lost 15.7%, while the SPDR Health Care Select Sector ETF has climbed 10.8% and the S&P 500 has advanced 8.4%.
The U.S. Food and Drug Administration has lifted a clinical hold on one of AbbVie's Inc's trials looking at venetoclax as a potential treatment for multiple myeloma, AbbVie said Monday. The Phase 3 trial, called CANOVA, looks at venetoclax in combination with dexamethasone as a treatment for patients with advanced multiple myleoma who also have a specific genetic abnormality. The translocation abnormality, t(11;14), is one of the most commonly tested genetic abnormalities in patients with disease. AbbVie said it had agreed to revise the CANOVA study protocol, including new risk mitigation measures, protocol-specified guidelines and updated futility criteria. The drugmaker can resume enrolling patients in the CANOVA trial at sites where the protocol has been approved, but all other clinical trials of venetoclax in patients with multiple myeloma are still on hold. The FDA placed a partial hold on all of AbbVie's clinical trials of venetoclax for multiple myeloma in March. The hold came after a review of another Phase 3 trial's data showed there was a higher proportion of deaths in the treatment arm than in the control arm. Shares of AbbVie have fallen 14.6% in the year to date through Friday, while the S&P 500 has gained 17.7%.
- FDA removed the partial clinical hold based upon agreement on revisions to the CANOVA study protocol, including new risk mitigation measures, protocol-specified guidelines and updated futility criteria ...
Novo Nordisk's (NVO) Esperoct gets EU approval for the treatment of adolescents (less-than or equal-to 12 years of age) and adults with haemophilia A.
Sanofi/Regeneron's IL-33 antibody REGN3500 meets primary endpoint in phase II study in asthma. It does not show increased benefit compared to Dupixent.
NORTH CHICAGO, Ill. , June 20, 2019 /PRNewswire/ -- The board of directors of AbbVie Inc. (NYSE: ABBV) declared a quarterly cash dividend of $1.07 per share. The cash dividend is payable August 15, 2019 ...
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On its first-quarter earnings conference call, AbbVie (ABBV) guided for 2019 global sales of $150 million for Skyrizi, most of which is expected to be reported in the second half of the year.
According to Evaluate Pharma’s World Preview 2019 report, AbbVie and Johnson & Johnson’s (JNJ) Imbruvica is expected to become the fifth-highest-selling pharmaceutical product in the world by 2024.