Home / Lifestyle / AbbVie to Acquire Allergan, Botox’s Maker, for $63 Billion

AbbVie to Acquire Allergan, Botox’s Maker, for $63 Billion

The drugmaker AbbVie said on Tuesday that it planned to buy Allergan, the maker of Botox, for about $63 billion, in one of the biggest mergers in the health care industry this year.

If completed, the deal would give AbbVie a potent source of popular treatments as it faces the loss of patent protection for its best-selling drug, Humira, a treatment for rheumatoid arthritis.

It is the second-biggest takeover in the pharmaceutical industry announced this year, after Bristol-Myers Squibb agreed to buy Celgene, a maker of anticancer drugs, for $74 billion.

Under the terms of the deal, AbbVie will pay 0.866 of its shares and $120.30 in cash for each share of Allergan. That is worth about $188.24 a share as of Monday’s closing prices, a nearly 45 percent premium on Allergan’s share price.

“This is a transformational transaction for both companies and achieves unique and complementary strategic objectives,” Richard A. Gonzalez, AbbVie’s chairman and chief executive, said in a statement.

Allergan’s chairman and chief executive, Brent Saunders, said that the proposed deal “creates compelling value” for his company’s shareholders and customers.

Shares in AbbVie were down 5 percent in premarket trading on Tuesday, while Allergan shares were up 31 percent. AbbVie is based in Chicago; Allergan has its headquarters in Dublin, although it has many facilities in the United States.

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About Christopher Ahn

Christopher L. Ahn writes for Lifestyle and Travel Sections in AmericaRichest.

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