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Wednesday, Jun 29, 2022

Allergan Being Sold for $63B

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Chicago-based AbbVie Inc. (NYSE: ABBV) has agreed to buy fellow pharmaceutical giant Allergan Plc (NYSE: AGN) for nearly $63 billion in cash and stock.

The deal could close by early 2020, the companies said Tuesday.

AbbVie’s takeover is worth about $188 a share, a nearly 45% premium over Allergan’s closing share price Monday. AbbVie traded Tuesday at about $67 a share for a $99 billion market cap, down 15%.

Including debt, the acquisition is worth nearly $80 billion.

It could result in more changes to Allergan’s Irvine campus, which largely serves the company’s U.S. Medical Aesthetics unit, which includes Botox, Juvederm fillers, SkinMedica and fat cooling technology CoolSculpting.

Allergan was known as Actavis plc until the New Jersey-based firm bought Irvine-based Allergan Inc. for $72.5 billion in early 2015.

The company, now registered in Ireland for tax purposes, took the Allergan name and the AGN ticker symbol.

The combined company’s stock price surged past $300 in 2015 but has since fallen precipitously. It was trading at $164 as of early Tuesday.

Talk of change at Allergan had picked up steam the past few weeks; analysts this month floated the idea of the company splitting itself in two.

AbbVie itself was split from Abbott Laboratories in 2013. Abbott has substantial operations in Orange County, where it employs about 500, but AbbVie—whose best-known product is Humira, used to treat various ailments—does not have a significant presence here.

Allergan is estimated to employ about 850 people in Irvine. Employee counts at the local office near John Wayne Airport are down significantly from 2015.

Mark Mueller
Mark Mueller
Mark is the Editor-in-Chief of the Orange County Business Journal, one of the premier regional business newspapers in the country. He’s the fifth person to hold the editor’s position in the paper’s long history. He oversees a staff of about 15 people. The OCBJ is considered a must-read for area business executives. The print edition of the paper is the primary source of local news for most of the Business Journal’s subscribers, which includes most of OC’s major corporate and community players. Mark’s been with the paper since 2005, and long served as the real estate reporter for the paper, breaking hundreds of commercial and residential real estate stories. He took on the editor’s position in 2018.

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