16
Tue, Jul
2 New Articles

Allergan bought by AbbVie for $63 billion

News

BIG EMPLOYER Allergan offices at Westport.

Michael Duffy


ALLERGAN, one of the biggest employers in Mayo, has been bought by US drugmaker AbbVie. The deal, announced today (Tuesday), is believed to be worth in the region of $63 billion, and it redomiciles the company to the US.
AbbVie chief executive Richard Gonzalez, 65, will head up the combined company and remain chairman and chief executive up until 2023, the companies said. Allergan chief executive Brent Saunders, who put together the current version of his company through a series of deals to roll-up several pharmaceutical firms in 2014, will join AbbVie’s board upon completion of the deal.
The deal sees the US based company grab control of the biggest name in medical aesthetics to help reduce its reliance on blockbuster arthritis treatment Humira. AbbVie has been under pressure to diversify its portfolio as Humira, the world’s best-selling drug, is already in competition with cheaper versions in Europe.
The move comes after Pfizer and Allergan terminated their $160 billion merger plan back in 2016, after the US government cracked down on corporate tax inversions. Allergan shareholders will receive 0.8660 AbbVie shares and $120.30 in cash for each share held, for a total consideration of $188.24 per Allergan share.
Analysts have said the deal provides AbbVie with a set of assets to help diversify away from Humira at a very reasonable price. They also said that in return, Allergan shareholders get a decent premium to what has been an low stock price.
The deal is expected to add ten percent to adjusted earnings per share over the first full year following the close, the companies said.
In April, Allergan said it will invest €65m in its Irish operations and will add 63 jobs to its plant in Westport. The global life-science company has four plants in Ireland - two in Dublin, one in Westport and one in Galway - and employs over 2,000 people in Ireland in total. It is thought the the deal with AbbVie will not effect the day-to-day running of the plant in Westport.
The Allergan Westport facility is the largest and most complex campus in the Allergan global network having first opened its Westport plant on a greenfield site in 1977.
Back in April, Mr Paul Coffey, Vice President and Plant General Manager, Allergan Westport, said the company was proud of its commitment to Westport, and he thanked local communities for their support.
“This €65 million investment further cements Ireland’s strategic role in Allergan’s global network. Continued investment of this scale builds on the €50 million investment programme in 2018 and €42 million in 2017, which allows us to apply world-class technology to Allergan’s leading innovation and product development strategy.
“We are expanding capacity to meet global demand and we are advancing our R&D capabilities to meet the needs of the future for our business. We are proud that 40 years on, we are still growing and offering valuable employment opportunities in key regions of Ireland, and we thank the communities around us for their continued support,” he said.