AbbVie USA based biopharmaceutical company signed an agreement. To buy Allergan in US$ 63 Billion. Allergan is an Ireland based pharmaceutical company. Which develops and markets brand name drugs. AbbVie signed a deal to buy Allergan. This is done to come out of a rough situation. This is due to the loss of stock suffered by Allergan’s in 2017. Allergan shareholders received 0.866 AbbVie share. And US$ 120.30 in cash for each share of Allergan of US$ 188.24 a share. The company serves across wide range of therapeutic areas. These includes hematologic, immunology, oncology, neuroscience, and others.
The proposed M&A will bring together a collection that includes AbbVie’s Humeral. It is the world’s best-selling drug. Allergan’s top drug Botox to deliver high growth. Botox increased competition with a cheaper. And new drug from FDA approval. Allergan’s moneymaker Restacks aspects of generic competition to begin in 2024. At this point what will increase a stock are FDA approvals. And the introduction of SYRIZA and Upadacitinib. The strong growth from Orillia. That the company estimating. Rapid development from Imbruvica and Venclexta are increasing stocks. AbbVie is focusing on expanding product portfolio arthritis treatment Humeral faces. The competition from cheaper versions in some countries. Europe and faces the expiration of patents right in the USA in 2023.
The pharmaceutical company is continuously leading drug clinical trial. The combination of drug test setbacks, strategic missteps. The company inability to grow earnings the stock. One recent trend is companies are focusing on niche therapies which can be o high price points. And dependence on list price treks, together with bolt on procurements. Also in-licensing products from thinner biotech’s. The AbbVie & Allergan acquisition for US$ 63 Bn. R&D investments yield a very low rate of return. Which deploying those resources instead, to acquire a company. That will generate revenue right from the start, seems like a very good deal.