AbbVie Completes Allergan Acquisition

AbbVie, a research-based global biopharmaceutical company, recently announced it has completed the acquisition of Allergan plc. The announcement comes after receiving approval from both the governmental regulatory authorities per the transaction agreement as well as the Irish High Court, according to the press release announcing the final acquisition status.

The acquisition will expand and diversify AbbVie’s revenue base to include opportunities in neuroscience (Botox) and global aesthetics business (Botox, Juvéderm), complimenting the company’s position in immunology with Humira, Skyrizi and Rinvoq; and hematologic oncology, with Imbruvica and Venclexta.

“This diversified on-market portfolio will drive the existing AbbVie growth platform (ex-Humira) to approximately $30 billion in revenues in full year 2020, with combined revenues of approximately $50 billion,” according to the release.

In a press release from earlier this year, AbbVie outlined their plan for operations once the acquisition was finalized. Under the AbbVie umbrella, Allergan Aesthetics will have dedicated research and development for its leading aesthetic products (Botox, Juvéderm, CoolSculpting and more).

“This global business, located in Irvine, California, will be led by Carrie Strom, currently Senior Vice President, U.S. Medical Aesthetics, Allergan. Upon completion of the Allergan acquisition, Ms. Strom will be named Senior Vice President, AbbVie and President, Global Allergan Aesthetics,” according to this release.

Strom will oversee global operations and directly report to Richard A. Gonzalez, Chairman and Chief Executive Officer, AbbVie.

The terms of the agreement state that Allergan shareholders will receive 0.8660 AbbVie shares and $120.30 in cash for each Allergan share. This will result in $193.23 per Allergan share based on the closing price of AbbVie’s common stock of $84.22 as of May 7, 2020.

Thomas C. Freyman, retired executive vice present and chief financial officer, Abbott, has also been elected to AbbVie’s Board of Directors. Freyman recently served on the Board of Directors for Allergan.

"We are pleased to reach this important milestone for the Company, its employees, shareholders and the patients we serve," Richard A. Gonzalez, chairman and chief executive officer at AbbVie, says in the press release. "Our new Allergan colleagues should be commended for all their efforts, along with those of our own employees, to achieve this turning point for our Company. The new AbbVie will be a well-diversified leader in many important therapeutic categories, with both on-market and pipeline assets, and our financial strength will allow us to continue to invest in innovative science and continue to serve unmet medical needs of patients that rely upon us. I am proud of both organizations and look forward to the opportunities ahead."