AbbVie Acquisition History Through Major Deals

AbbVie has a rich history of strategic acquisitions that have shaped the company into the global leader it is today. In 2013, AbbVie acquired Shire for $52 billion, expanding its presence in the rare disease market.

This deal marked a significant milestone in AbbVie's acquisition history, demonstrating its commitment to growth through strategic partnerships. The acquisition of Shire added a range of treatments for rare diseases to AbbVie's portfolio.

AbbVie's acquisition of Pharmacyclics in 2015 for $21 billion further solidified its position in the pharmaceutical industry. This deal brought AbbVie a promising cancer treatment, ibrutinib, which has since become a key product in the company's portfolio.

The acquisition of Allergan in 2019 for $63 billion was another major deal that expanded AbbVie's presence in the pharmaceutical industry. This deal added a range of treatments for conditions such as dry eye and psoriasis to AbbVie's portfolio.

Explore further: Underwrite a Deal

AbbVie has made several strategic acquisitions to expand its portfolio and capabilities.

One notable acquisition is Androscoggin, which AbbVie acquired in 1999.

AbbVie acquired Androscoggin to gain access to its manufacturing capabilities and expertise.

AbbVie's acquisition of Androscoggin helped the company to improve its manufacturing efficiency and capacity.

This acquisition also enabled AbbVie to expand its product offerings and enter new markets.

Expand your knowledge: Wason Manufacturing Company

AbbVie has made a significant number of investments, with a total of 8 reported investments.

Their most recent investment was in HotSpot Therapeutics as part of their Project Finance on December 06, 2022.

We don't have information on the specific focus or goals of these investments, but it's clear that AbbVie is actively working to expand its reach and influence in the industry.

The exact nature and scope of these investments are not specified, but it's likely that they are aimed at furthering AbbVie's mission and goals.

AbbVie's investment strategy and priorities are not explicitly stated in the available information, but it's clear that they are committed to growth and development.

Their investment in HotSpot Therapeutics is a notable example of their commitment to innovation and progress.

Discover more: MGIC Investment Corporation

AbbVie acquired Pharmacyclics in 2015 for $21 billion, expanding its oncology portfolio with the addition of Imbruvica.

In 2019, AbbVie acquired Allergan for $63 billion, adding a diverse portfolio of branded and generic pharmaceuticals, as well as a strong presence in the aesthetics market.

AbbVie also acquired Botox-maker Galderma's North American business in 2019, solidifying its position in the aesthetics market.

The acquisition of Allergan brought AbbVie a portfolio of 12 brands, including Botox and Juvederm.

AbbVie's acquisition of Pharmacyclics has been a significant success, with Imbruvica generating over $10 billion in annual sales.

See what others are reading: Abbvie Allergan Merger

AbbVie will pay $188.24 a share in cash and stock, a 45% premium over Allergan’s closing price on Monday.

This deal marks a significant transaction for both companies, allowing AbbVie to diversify while sustaining a focus on innovative science and its industry-leading pipeline.

AbbVie shareholders will hold 83% of the combined company's stock, while Allergan shareholders will hold the remainder.

A unique perspective: Does Abbvie Own Allergan

The combined company will have the opportunity to make even bigger contributions to global health than either can alone, with 2019 annual combined revenue of approximately $48 billion and scale in more than 175 countries.

AbbVie's rheumatoid arthritis injection, Humira, is the world's biggest-selling drug, with about $20 billion in sales last year.

The deal involves AbbVie paying $188.24 per share in cash and stock, a 45% premium over Allergan's closing price on Monday.

AbbVie shareholders will hold 83% of the combined company's stock, leaving the remaining 17% for Allergan shareholders.

The deal is expected to close in early 2020, marking the beginning of a new era for the combined company.

AbbVie's rheumatoid arthritis injection, Humira, is the world's biggest-selling drug, with sales totaling about $20 billion last year.

Allergan's Botox sales will offer shareholders a profitable exit after a four-year downward trend, according to a report from Bloomberg.

The combined company will have a significant presence in over 175 countries, with annual combined revenue of approximately $48 billion in 2019.

The deal is expected to be 10% accretive to adjusted EPS over its first full year, with peak accretion estimated to be greater than 20%.

The combined companies are projected to generate a significant amount of operating cash flow, with $19 bn in cash flow for FY18. This will provide sufficient funding and flexibility for robust pipeline investment and debt reduction.

AbbVie's management expects pretax savings and cost reduction of at least $2 bn by its third year after the deal closes. This will be achieved through increasing efficiencies in SG&A, eliminating redundancies in manufacturing, and leveraging procurement spend.

The deal is expected to result in a 10.6% CAGR growth in the medical aesthetics space, from $10.3 bn in 2018 to $25.6 bn in 2027.

AbbVie will target a debt reduction of $15 - $18 bn before the end of 2021, using the continual generation of cash flow from HUMIRA to service debt.

Expand your knowledge: Unitranche Debt

In 2023, Bristol Myers Squibb made a major move into neuroscience by acquiring Karuna Therapeutics for $14 billion. This deal solidified neuropsychology's position as a major interest area for big pharma and proved that persistence in challenging biology can pay off.

Bristol Myers Squibb's acquisition of Karuna was a significant one, with the biotech being acquired for $330 per share, a 53% premium over its close on Thursday and a 35% premium over its 52-week-high.

AbbVie also made a notable acquisition in 2024, acquiring Nimble Therapeutics for an undisclosed amount. This acquisition added potential novel oral peptide IL23R inhibitor for psoriasis to AbbVie's pipeline.

AbbVie's acquisition of Nimble also brought a proprietary peptide synthesis, screening, and optimization platform to the company, which will help drive rapid discovery and optimization of oral peptide candidates.

Here's a brief summary of AbbVie's acquisition history: