AbbVie Agrees to Acquire Allergan with $63B Deal

AbbVie will acquire Allergan under an estimated $63 billion deal that is expected to close by early 2020.

Announced by both companies today, the new combined company will consist of franchises across immunology, hematologic oncology, medical aesthetics, neuroscience, women’s health, eye care, and virology.

"This is a transformational transaction for both companies and achieves unique and complementary strategic objectives," said Richard A. Gonzalez, chairman and chief executive officer, AbbVie, in a press release. "The combination of AbbVie and Allergan increases our ability to continue to deliver on our mission to patients and shareholders. 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."

Brent Saunders, chairman and chief executive officer, Allergan, said the acquisition offers “compelling value” for Allergan’s customers, patients, and shareholders.

"With 2019 annual combined revenue of approximately $48 billion, scale in more than 175 countries, an industry-leading R&D pipeline and robust cash flows, our combined company will have the opportunity to make even bigger contributions to global health than either can alone," said Saunders, in a prepared statement. "Our fast-growing therapeutic areas, including our world class medical aesthetics, eye care, CNS and gastrointestinal businesses, will enhance AbbVie's strong growth platform and create substantial value for shareholders of both companies."

The companies’ aligned strategies focus on new growth platforms and leadership positions that will diversify and expand AbbVie’s revenue base, while enhancing Allergan’s commercial strength, and international infrastructure. Other benefits of the acquisition, according to AbbVie, include enhanced profitability for the combined company, whose success would fund pipeline investment, debut reduction, and capital return to shareholders.

AbbVie will continue to operate in Delaware, and have its principal executive offices in North Chicago, IL. The company will continue to be led by Gonzalez. Two members of Allergan's Board, including Saunders, will join AbbVie's Board upon completion of the transaction.

Reference

AbbVie to Acquire Allergan in Transformative Move for Both Companies [news release]. North Chicago, IL and Dublin, Ireland; June 25, 2019: AbbVie website. https://news.abbvie.com/news/press-releases/abbvie-to-acquire-allergan-in-transformative-move-for-both-companies.htm?view_id=3018. Accessed June 25, 2019.