AbbVie Strikes Deal to Buy Allergan for About $63bn
25 June 2019 - 11:43PM
Dow Jones News
By WSJ City
AbbVie has reached a deal to buy Allergan for about $63bn, as
two big drugmakers bet a combination will deliver new sources of
growth they have struggled to find on their own.
KEY FACTS
--- The takeover is worth $188 a share in cash and stock.
--- The price represents a 45% premium over Allergan's closing
price on Monday.
-- Buying Allergan would help AbbVie dominate the $8bn-plus
market for Botox and other beauty drugs.
--- That comes as AbbVie braces for the end of patent protection
for the world's top-selling drug, Humira.
--- Allergan's nearly $16bn in yearly revenue would give AbbVie
another source of cash to hunt for a new generation of
products.
Why This Matters
Lately, Wall Street has been clamouring for change at Allergan,
with its shares trading at a fraction of their peak of more than
$330 in the summer of 2015. Analysts have been saying the company
could split into two pieces but few expected CEO Brent Saunders to
pull off a sale, especially at such a lofty premium.
A fuller story is available on WSJ.com
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(END) Dow Jones Newswires
June 25, 2019 09:28 ET (13:28 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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