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AbbVie Pounces On Chance To Buy Revenues In $63bn Mega-Deal For Allergan

 
• By Jessica Merrill

AbbVie will gain the $3.58bn Botox business, a women's health franchise and gastrointestinal products in an opportunistic acquisition intended to reduce the company's dependence on Humira.

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AbbVie Inc.'s quest to reduce its reliance on Humira (adalimumab) has led the company to Allergan PLC's doorstep. AbbVie announced an agreement to acquire Allergan for approximately $63bn on 25 June in a mega-deal that will move AbbVie into medical aesthetics and establish the merged company as a leading pharmaceutical manufacturer with $48bn in combined revenues, putting it in the top echelon of big pharma with the likes of Pfizer Inc., Novartis AG and Roche.

The stage has been set for a buyer to make a play for Allergan, with the company's stock being out of favor on Wall Street, headwinds from the loss of patent exclusivity for Restasis, growing competition in medical aesthetics and pipeline failures. Activist investors even launched a campaign against CEO Brent Saunders and the Allergan management team, seeking to increase oversight of the company

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