AbbVie Inc. said it’s buying Dublin, Ireland-based drug firm Allergan in a $63 billion deal.
AbbVie (NYSE: ABBV), based in North Chicago, Illinois, said it’s paying 0.8660 of its shares and $120.30 in cash for each Allergan (NYSE: AGN) share, for a total consideration of $188.24 per Allergan share.
AbbVie said the combined companies’ headquarters will remain in North Chicago.
“This is a transformational transaction for both companies and achieves unique and complementary strategic objectives. The combination of AbbVie and Allergan increases our ability to continue to deliver on our mission to patients and shareholders. With our enhanced growth platform to fuel industry-leading growth, this strategy allows us to diversify AbbVie’s business while sustaining our focus on innovative science and the advancement of our industry-leading pipeline well into the future,” said Richard Gonzalez, AbbVie chairman and CEO, in a statement. Gonzalez will remain CEO of the combined companies.
AbbVie is best known for its Humira rheumatoid arthritis drug. Healthcare company Abbott Laboratories spun off AbbVie, its research-based pharmaceutical business, in January 2013.
Allergan makes products in four therapeutic areas including medical aesthetics, eye care, central nervous system and gastroenterology.
The Wall Street Journal reported that the AbbVie purchase of Allergan “would deliver (AbbVie) a dominant position in the $8 billion-plus market for Botox and other beauty drugs, as well as a number of popular eye treatments, as AbbVie braces for the end of patent protection for the world’s top-selling drug, Humira.”
In December, AbbVie gave $50 million to Memphis-based St. Jude Children’s Research Hospital, the single-largest gift in the hospital’s history.