AbbVie reaches agreement for takeover of Shire

AbbVie has been able to strike a deal to acquire Shire in a deal worth around 32 billion pounds, bringing an end to extensive negotiations between the two companies.

Shire had previously rejected four separate offers from AbbVie that it believed undervalued the company, but believes the final price provides "substantial" value for shareholders and will bolster the capabilities of both firms.

The new-look organisation, dubbed New AbbVie, will be a specialty biopharmaceutical company with sustainable leadership positions in key areas, such as immunology, rare diseases, neuroscience, metabolic diseases, liver disease and oncology.

AbbVie's Humira, the world's top selling medicine globally in 2013, will be the centrepiece of New AbbVie's portfolio, which will be significantly bolstered by Shire's complementary rare disease and neuroscience platform.

Richard Gonzalez, chairman of the board and chief executive officer of AbbVie, said: "We're creating a unique, diversified biopharmaceutical company. The combined company would benefit from a best-in-class product development platform, a stronger pipeline and more enhanced research and development capabilities."

It is now expected that the takeover will be completed during the fourth quarter of this year.