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AbbVie Will Use Allergan Revenue To Fund Combined Firm's Large R&D Pipeline

 
• By Mandy Jackson

While AbbVie said its $63bn purchase places little value on Allergan's R&D pipeline, the companies have 62 drugs in clinical development with 38 in Phase II and III or filed with regulators, including new indications for approved products.

R&D
Botox and other Allergan products will fund AbbVie's diversification. • Source: Shutterstock

AbbVie Inc. CEO Richard Gonzalez said repeatedly when describing the company's rationale for buying Allergan PLC for $63bn that very little value was ascribed to Allergan's research and development pipeline. However, the pharmaceutical firms combined have 62 drugs in clinical development – with 38 in Phase II and III or awaiting regulatory approvals, including new indications for marketed products – requiring substantial ongoing investment.

AbbVie executives admitted on 25 June when the mega-deal was announced that the company is buying Allergan to add its nearly $16bn in annual sales to AbbVie's own $33bn in revenue before its $20bn in Humira (adalimumab) sales are whittled away by biosimilar competitors, which will launch in the US starting in 2023

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