AbbVie, nearing the end of Humira's historic run, scoops up a struggling Allergan for $63B

Rumors have been swirling that after years of turmoil and resistance, Allergan could be getting ready to split. But it looks like the drugmaker had other ideas. AbbVie, looking for new medicines to supplant its aging megablockbuster Humira, has stepped in to buy the floundering drugmaker in a $63 billion deal that ranks as one of the year's largest. With the Illinois pharma giant offering 0.866 AbbVie shares and $120.30 in cash for each Allergan share, the deal represents a 45% premium to Allergan’s share values after Monday’s close. That premium would’ve been larger if Allergan shares hadn’t been rallying lately due to split-up speculation. AbbVie CEO Richard Gonzalez will run the combined company after an expected close in early 2020. He plans to stay on until Humira’s loss of exclusivity in 2023. On a conference call Tuesday morning, Gonzalez said the megadeal provides the combined company “immediate standalone scale” and “best-in-industry growth prospects.” It'll be the fourth-largest drugmaker globally, with leadership positions in several treatment areas, he said. AbbVie has identified $2 billion in potential cost cuts. AbbVie investors didn't seem to share Gonzalez's enthusiasm on Tuesday. The company's shares were down about 14.5% shortly after market open.

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