AbbVie to Buy Allergan for $63B

06/25/2019

AbbVie Inc., a $32.75b pharmaceutical company agreed to buy Allergan plc, an Ireland-based $15.79b pharmaceutical company for $63b. The latest merger in an industry where huge premiums are being paid to incease growth prospects. The deal gives AbbVie Botox, but doesn’t involve a huge pipeline of blockbuster drugs. Allergan does diversify AbbVie away from Humira, the rheumatoid arthritis injection that is the world’s biggest-selling drug worldwide, with about $20 billion in sales last year. Allergan develops branded pharmaceutical, devices, biologic, surgical, and regenerative medicine products. It addresses medical aesthetics, dermatology, eye care, neuroscience, urology, gastrointestinal, women’s health, and anti-infective therapeutic products. Allergan also offers breast implants and tissue expanders, cosmetic treatments, and inhibitors for psoriasis and other autoimmune disorders. The acquisition is expected to provide annual synergies of at least $2b. The combined companies will have strong franchises across immunology, hematologic oncology, medical aesthetics, neuroscience, women's health, eye care and virology. Deal value - ~$63b on sales of $15.79b (4.0x) and EBITDA of $385m (164x).

 

Keywords: Healthcare Investment Banking, Healthcare M&A, Healthcare mergers