The specialty drug company AbbVie will spend $63 billion to acquire Allergan, the maker of Botox and other cosmetic treatments.
The two pharmaceutical companies have little in common, save for a desire to reinvigorate growth that has sputtered. Shares of AbbVie are down 16% over the past year and shares of Allergan, with sales growth down over the past three quarters, have fallen 24%.
"This is a transformational transaction for both companies and achieves unique and complementary strategic objectives," said AbbVie CEO and Chairman Richard Gonzalez in a prepared statement Tuesday. "The combination of AbbVie and Allergan increases our ability to continue to deliver on our mission to patients and shareholders."
The maker of the global blockbuster immune disorder treatment Humira will pay $120.30 in cash and a portion of AbbVie stock for each Allergan share. That amounts to $188.24 per share, or a 45% premium to Allergan's closing price Monday.
AbbVie is facing the expiration of patent protection for Humira, which brought in a staggering $20 billion in sales last year.
Industry analysts had been anticipating a move by AbbVie to offset the introduction of generics to an extremely valuable pipeline for the company.
"We are unsurprised by the timing and the target of the deal given (AbbVie's) Humira patent cliff," wrote Citi analyst Andrew Baum.
Shares of Allergan Plc, based in Dublin, Ireland, soared 31.2% in premarket trading Tuesday.
AbbVie shareholders will own 83% of the specialty drug company combination after the deal's completion, while Allergan shareholders will have a 17% stake.
Gonzalez will remain chairman and CEO at AbbVie. Two members of Allergan's board, including chairman and CEO Brent Saunders, will join AbbVie's board once the deal closes.
Regulators and Allergan shareholders still have to approve the deal.
Shares of AbbVie Inc., based in North Chicago, Illinois, declined 8% before the market opened.
TOKYO (AP) — The American envoy to the United Nations called Friday for countries armed with atomic weapons to pursue nuclear disarmament as she visited the atomic bomb museum in Nagasaki, Japan.
Linda Thomas-Greenfield, who became the first U.S. cabinet member to visit Nagasaki, stressed the importance of dialogue and diplomacy amid a growing nuclear threat in the region.
“We must continue to work together to create an environment for nuclear disarmament. We must continue to prevent the spread of nuclear weapons in every corner of the world,” she said after a tour of the atomic bomb museum.
“For those of us who already have those weapons, we must pursue arms control. We can and must work to ensure that Nagasaki is the last place to ever experience the horror of nuclear weapons,” she added, standing in front of colorful hanging origami cranes, a symbol of peace.
The United States dropped the world’s first atomic bomb on Hiroshima on Aug. 6, 1945, destroying the city and killing 140,000 people. A second attack three days later on Nagasaki killed 70,000 more people. Japan surrendered on Aug. 15, ending World War II and its nearly half-century of aggression in Asia.
Nagasaki Gov. Kengo Oishi said in a statement that he believed Thomas-Greenfield's visit and her first-person experience at the museum “will be a strong message in promoting momentum of nuclear disarmament for the international society at a time the world faces a severe environment surrounding atomic weapons.”
Oishi said he conveyed to the ambassador the increasingly important role of Nagasaki and Hiroshima in emphasizing the need of nuclear disarmament.
Thomas-Greenfield's visit to Japan comes on the heels of Prime Minister Fumio Kishida's official visit to the United States last week and is aimed at deepening Washington's trilateral ties with Tokyo and Seoul. During her visit to South Korea earlier this week, she held talks with South Korean officials, met with defectors from North Korea and visited the demilitarized zone.
The ambassador said the United States is looking into setting up a new mechanism for monitoring North Korea's nuclear weapons program. Russia and China have thwarted U.S.-led efforts to step up U.N. sanctions on North Korea over its ballistic missile testing since 2022, underscoring a deepening divide between permanent Security Council members over Russia’s war on Ukraine.
She said it would be “optimal” to launch the new system next month, though it is uncertain if that is possible.
The U.N. Security Council established a committee to monitor sanctions, and the mandate for its panel of experts to investigate violations had been renewed for 14 years until last month, when Russia vetoed another renewal.
In its most recent report, the panel of experts said it is investigating 58 suspected North Korean cyberattacks between 2017 and 2023 valued at approximately $3 billion, with the money reportedly being used to help fund its weapons development.
The United States, Japan and South Korea have been deepening security ties amid growing tension in the region from North Korea and China.
U.S. Ambassador to United Nations Linda Thomas-Greenfield, left, and Japan's Prime Minister Fumio Kishida, right, shake hands during a meeting Friday, April 19, 2024, at prime minister's office in Tokyo. (AP Photo/Eugene Hoshiko, Pool)
U.S. Ambassador to United Nations Linda Thomas-Greenfield, left, and Japan's Prime Minister Fumio Kishida, right, shake hands during a meeting Friday, April 19, 2024, at prime minister's office in Tokyo. (AP Photo/Eugene Hoshiko, Pool)
U.S. Ambassador to United Nations Linda Thomas-Greenfield, right, speaks to Rahm Emanuel, U.S. Ambassador to Japan, second right, as they wait for a meeting with Japan's Prime Minister Fumio Kishida Friday, April 19, 2024, at prime minister's office in Tokyo. (AP Photo/Eugene Hoshiko, Pool)
U.S. Ambassador to United Nations Linda Thomas-Greenfield, left, and Rahm Emanuel, U.S. Ambassador to Japan, right, walk to meet Japan's Prime Minister Fumio Kishida Friday, April 19, 2024, at prime minister's office in Tokyo. (AP Photo/Eugene Hoshiko, Pool)
U.S. Ambassador to United Nations Linda Thomas-Greenfield, left, and Japan's Prime Minister Fumio Kishida, right, talk prior to a meeting Friday, April 19, 2024, at prime minister's office in Tokyo. (AP Photo/Eugene Hoshiko, Pool)
U.S. Ambassador to United Nations Linda Thomas-Greenfield, left, and Japan's Prime Minister Fumio Kishida, right, prepare to talk during a meeting Friday, April 19, 2024, at prime minister's office in Tokyo. (AP Photo/Eugene Hoshiko, Pool)
