AbbVie Inc. announced Tuesday it inked a “transformative” deal to buy Allergan for about $63 billion.
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The pharmaceutical company will be acquired in a cash and stock deal, with the transaction equity value based on AbbVie’s closing stock price of $78.45 on Monday.
“This is a transformational transaction for both companies and achieves unique and complementary strategic objectives,” Richard A. Gonzalez, AbbVie’s chairman and chief executive officer, said in a news release. “The combination of AbbVie and Allergan increases our ability to continue to deliver on our mission to patients and shareholders.”
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“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,” he added.
Ticker | Security | Last | Change | %Chg |
---|---|---|---|---|
ABBV | ABBVIE INC. | 78.45 | -0.33 | -0.42% |
AGN | ALLERGAN PLC | 129.57 | -1.24 | -0.95% |
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Allergan shareholders will receive 0.8660 AbbVie shares and $120.30 in cash for each Allergan share held, for a total consideration of $188.24 per share. The deal is a 45 percent premium of Monday’s closing price of Allergan’s stock. The companies expect the deal to close by early 2020.
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AbbVie said the deal will expand its portfolio to “include several leadership positions in high-value therapeutic areas and an industry-leading pipeline of next-generation therapies with ensured capacity for continued investment across our innovative pipeline.”
Shares of Allergan, based in Dublin, Ireland, jumped before the opening bell while AbbVie shares sank.