ABBV AbbVie Inc

By WSJ City 

AbbVie has reached a deal to buy Allergan for about $63bn, as two big drugmakers bet a combination will deliver new sources of growth they have struggled to find on their own.

KEY FACTS

--- The takeover is worth $188 a share in cash and stock.

--- The price represents a 45% premium over Allergan's closing price on Monday.

-- Buying Allergan would help AbbVie dominate the $8bn-plus market for Botox and other beauty drugs.

--- That comes as AbbVie braces for the end of patent protection for the world's top-selling drug, Humira.

--- Allergan's nearly $16bn in yearly revenue would give AbbVie another source of cash to hunt for a new generation of products.

Why This Matters

Lately, Wall Street has been clamouring for change at Allergan, with its shares trading at a fraction of their peak of more than $330 in the summer of 2015. Analysts have been saying the company could split into two pieces but few expected CEO Brent Saunders to pull off a sale, especially at such a lofty premium.

A fuller story is available on WSJ.com

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(END) Dow Jones Newswires

June 25, 2019 09:28 ET (13:28 GMT)

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