AbbVie acquires Allergan

AbbVie is to acquire Allergan in a $63 billion cash-and-stock deal that is expected to generate around $2 billion in annual pre-tax synergies and other cost savings within three years. It is thought that the deal will create a market leader in numerous therapy areas such as eye care, immunology, neuroscience and women’s health, increasing AbbVie’s profitability through the extension to its product portfolio. The merger is also expected to boost AbbVie’s capabilities in terms of funding research and development, expanding its global reach, and generating cash flow for dividends, investment in new treatments, and reducing debt. Adjusted earnings per share is expected to increase by 10% in the year after the transaction closes.
Allergan’s chief executive officer, Brent Saunders, said: “With 2019 annual combined revenue of approximately $US48 billion, scale in more than 175 countries, an industry-leading R&D pipeline and robust cash flows, our combined company will have the opportunity to make even bigger contributions to global health than either can alone.”