United States biopharma AbbVie to buy Botox maker Allergan for $63 billion

Abbvie is the maker of the blockbuster immune disorder treatment Humira

The deal is the second mega merger this year, after January saw Bristol-Myers Squibb put in a $74 billion bid for Celgene.

Including Allergan's debts, the entire deal is estimated to be worth more than $83 billion.

Revance has a market value of $550 million, and the stock jumped 5% yesterday after the AbbVie-Allergan deal was announced.

The offer represents a 45 per cent premium over Monday's share price of Irish-registered Allergan, whose management recommended the operation to shareholders.

"The price tag caused heartburn on Wall Street, and AbbVie had its worst day of trading since it was spun off from former parent Abbott Laboratories". And although it brought in nearly $20 billion in revenue previous year, Humira's lower-priced competitors are already on sale in Europe and headed for the U.S.in 2023.

Allergan's chief executive officer, Brent Saunders, said: "With 2019 annual combined revenue of approximately $US48 billion, scale in more than 175 countries, an industry-leading R&D pipeline and robust cash flows, our combined company will have the opportunity to make even bigger contributions to global health than either can alone". Allergan's shares have lost around half their value since then. Its future rate will rise to only 13%, the company said. A USA corporate tax overhaul under the Trump administration, which helped companies bring back revenue earned overseas, also helped, he said. Mr Gonzalez said on the call that he intends to stay with the company at least through Humira's loss of exclusivity in the US. Allergan shares rose 31 percent in premarket trading Tuesday to $170.25 per share while AbbVie dropped eight percent to $72.

Shares of AbbVie are down 16% over the past year and shares of Allergan have fallen 24%, amid declining sales growth over the past three quarters and the failure of an experimental depression drug in March.

The transaction is expected to add 10% to adjusted earnings per share over the first full year following the close, the companies said.

Two Allergan directors, including Mr Saunders, will join AbbVie's board after the purchase is completed, according to the statement.

Morgan Stanley & Co. acted as AbbVie's financial adviser and Kirkland & Ellis LLP and McCann FitzGerald were legal advisers.



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