AbbVie Completes $63-Bn Acquisition of Allergan
AbbVie has completed its $63-billion acquisition of Allergan following receipt of regulatory approval from all government authorities required by the transaction agreement and approval by the Irish High Court (Allergan is headquartered in Dublin, Ireland). The companies had announced the deal in June 2019.
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, 2020). Allergan common stock ceased trading on the New York Stock Exchange as of the close of trading on May 8, 2020.
The acquisition of Allergan positions AbbVie as it faces near-term biosimilars competition for its top-selling drug, Humira (adalimumab), a drug to treat autoimmune diseases in multiple indications, with 2019 sales of approximately $19.2 billion. The US composition of matter patent for Humira expired in December 2016, and the equivalent European Union (EU) patent expired in the majority of EU countries in October 2018. In the US, non-composition of matter patents covering adalimumab expire no earlier than 2022. AbbVie has entered into settlement and license agreements with several adalimumab biosimilar manufactures under which license agreements in the US will begin in 2023; the license in Europe began in 2018.
The growth portfolios of AbbVie (ex-Humira) and Allergan have estimated combined revenues of $30 billion for the full-year 2020, and overall combined revenues are approximately $50 billion. The combined company has several key therapeutic areas: immunology, oncology, neuroscience, eye care, virology, women’s health and gastroenterology, in addition to products and services across Allergan’s aesthetics portfolio.
Additionally, in connection with the closing of the transaction, the AbbVie Board of Directors has elected Thomas C. Freyman, retired Executive Vice President and Chief Financial Officer, Abbott, to join the AbbVie board. Mr. Freyman recently served on the Allergan Board of Directors.