AbbVie Completes Acquisition of Allergan, Strengthening Pipeline Portfolio to Drive Long-Term Sustainable Growth
May 09, 2020 13:17
CST Updated
13:17
AbbVie
Innovative Drug Developer
Allergan
Global Pharmaceutical Manufacturer
On May 8, 2020, AbbVie (NYSE: ABBV), a top-10 global research-based biopharmaceutical company, announced today that it has completed the acquisition of Allergan. The transaction received all required regulatory approvals from relevant government authorities as stipulated in the acquisition agreement, as well as approval from the High Court of Ireland.
Richard A. Gonzalez, Chairman and Chief Executive Officer of AbbVie, stated, “This landmark acquisition is highly significant for our employees, shareholders, and patients, and we are thrilled by this development. I would like to extend my heartfelt gratitude to all employees—whether from Allergan or AbbVie—who have contributed to achieving this pivotal milestone. Moving forward, with a more diversified portfolio of marketed and investigational products, the new AbbVie will hold a leading position across multiple key therapeutic areas. Meanwhile, our financial strength will enable us to continue investing in scientific innovation, thereby addressing unmet patient needs. I am proud of both organizations and look forward to the boundless possibilities that lie ahead.”
Richard A. Gonzalez, Chairman and Chief Executive Officer of AbbVie, stated, “This landmark acquisition is highly significant for our employees, shareholders, and patients, and we are thrilled by this development. I would like to extend my heartfelt gratitude to all employees—whether from Allergan or AbbVie—who have contributed to achieving this pivotal milestone. Moving forward, with a more diversified portfolio of marketed and investigational products, the new AbbVie will hold a leading position across multiple key therapeutic areas. Meanwhile, our financial strength will enable us to continue investing in scientific innovation, thereby addressing unmet patient needs. I am proud of both organizations and look forward to the boundless possibilities that lie ahead.”
This acquisition significantly strengthened and diversified AbbVie’s revenue base, complementing its leading positions across multiple therapeutic areas. InImmunologyIn this therapeutic area, AbbVie owns Humira® as well as the recently launched Skyrizi™ and Rinvoq™; in hematologyTumorIn the oncology space, it holds Imbruvica® and Venclexta®. In neuroscience, Allergan’s Botox® Therapeutics, Vraylar®, and Ubrelvy™ will drive new growth opportunities; in aesthetics, Allergan contributes the global businesses of leading brands such as Botox® and Juvederm®.
A diversified portfolio of marketed products will drive AbbVie’s existing growth platforms (excluding Humira) to achieve approximately $30 billion in revenue for the full year 2020, with total company revenue potentially exceeding $50 billion. Meanwhile, it will enhance the company’s long-term growth potential, promote dividend growth, and strengthen investment in innovation across various therapeutic areas. Leveraging the growth in operating cash flow, the company expects to rapidly repay incremental debt.
Concurrent with the completion of the transaction, AbbVie's Board of Directors appointed the retired formerAbbottExecutive Vice President and Chief Financial Officer Thomas C. Freyman serves as a member of the Board of Directors. Previously, Mr. Freyman served on the Board of Directors of Allergan.
A diversified portfolio of marketed products will drive AbbVie’s existing growth platforms (excluding Humira) to achieve approximately $30 billion in revenue for the full year 2020, with total company revenue potentially exceeding $50 billion. Meanwhile, it will enhance the company’s long-term growth potential, promote dividend growth, and strengthen investment in innovation across various therapeutic areas. Leveraging the growth in operating cash flow, the company expects to rapidly repay incremental debt.
Concurrent with the completion of the transaction, AbbVie's Board of Directors appointed the retired formerAbbottExecutive Vice President and Chief Financial Officer Thomas C. Freyman serves as a member of the Board of Directors. Previously, Mr. Freyman served on the Board of Directors of Allergan.