Reuters
- Abbvie has agreed to buy Allergan in a $63 billion cash-and-stock deal.
- Allergan shareholders will receive 0.8660 AbbVie shares and $120.30 in cash for each Allergan share that they hold, totaling $188.24 per Allergan share.
- The offer represents a 45% premium to the closing price of Allergan's shares on June 24, 2019.
- The biopharmeuticals giant and the drugmaker expect the deal to generate $2 billion in annual synergies within three years, and boost adjusted EPS by 10% in the year after the transaction closes.
- Watch Abbvie and Allergan trade live on Markets Insider.
Abbvie has agreed to buy Allergan in a $63 billion cash-and-stock deal that would combine two of the world's largest pharmaceutical companies. News of the deal was first reported by the Wall Street Journal.
Allergan shareholders will receive 0.8660 AbbVie Shares and $120.30 in cash for each Allergan Share that they hold, totaling $188.24 per Allergan Share. The offer represents a 45% premium to the closing price of Allergan's Shares on June 24, 2019.
Biopharmaceuticals specialist Abbvie and drugmaker Allergan expect the merger to create a leading player in immunology, neuroscience, eye care, and other medical fields. They estimate the deal will generate $2 billion in annual synergies within three years, and lift adjusted EPS by 10% in the year after the transaction closes.
The news sent shares in Allergan up 30% in pre-market trading, while Abbvie's stock dropped 8%.
This story is still developing, check back for more updates...
