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AbbVie Completes Acquisition of Allergan

By on May 12, 2020

(Screen grab of https://www.abbvie.pr/)

Receives approval for $63 billion closing

SAN JUAN – Giant pharma company AbbVie has completed its acquisition of Allergan plc, the Dublin-based pharmaceutical that makes Botox, after receiving approval from the U.S. government and the Irish High Court.

In its news release, AbbVie says the transaction “significantly expands and diversifies” its revenue base and “complements existing leadership positions in Immunology, with Humira®, and recently launched Skyrizi TM and RinvoqTM, and Hematologic Oncology, with Imbruvica® and Venclexta®. Allergan provides new growth opportunities in Neuroscience, with Botox® Therapeutics, Vraylar® and UbrelvyTM and a global aesthetics business, with leading brands including Botox® and Juvederm®.”

Under the terms of the transaction agreement, Allergan shareholders will receive 0.8660 AbbVie shares and $120.30 in cash for each Allergan share, for a total consideration of $193.23 per Allergan share (based on the closing price of AbbVie’s common stock of $84.22 on May 7). Allergan common stock ceased trading on the New York Stock Exchange as of the close of trading Friday.

“We are pleased to reach this important milestone for the Company, its employees, shareholders and the patients we serve” said Richard A. González, chairman and chief executive officer of AbbVie. “Our new Allergan colleagues should be commended for all their efforts, along with those of our own employees, to achieve this turning point for our Company. The new AbbVie will be a well-diversified leader in many important therapeutic categories, with both on-market and pipeline assets, and our financial strength will allow us to continue to invest in innovative science and continue to serve unmet medical needs of patients that rely upon us. I am proud of both organizations and look forward to the opportunities ahead.”

AbbVie has manufacturing sites in Barceloneta and Jayuya, and a Commercial Affiliate Office in San Juan. The company employs hundreds of people among its joint manufacturing and commercial operations in Puerto Rico.

Alejandro Drevon, Puerto Rico Commercial Affiliate’s general manager, said that “we are enthusiastic by this acquisition, which strengthens our commitment to making a remarkable impact in people’s lives. We provide broader support to our patients and help address the health needs of underserved communities. We strive to protect our environment and to make a positive impact in the areas where we live and work.”

The portfolio is expected to drive AbbVie’s “growth platform (ex-Humira) to approximately $30 billion in revenues in full year 2020, with combined revenues of approximately $50 billion,” the company says, adding that it also positionsit for “enhanced long-term growth potential, a growing dividend and investment in innovation in each of its therapeutic categories.”

AbbVie anticipates rapidly paying down the incremental debt with its increased operating cash flows and said it expects to provide updated financial guidance for the combined company on its second-quarter earnings call.

Additionally, in connection with the closing of the transaction, the AbbVie board has elected Thomas C. Freyman, retired executive vice president and chief financial officer of pharmaceutical company Abbott, from which Abbvie was spinned off in 2011, to join the AbbVie board. Freyman recently served on Allergan’s board.

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