AbbVie secures £32bn Shire deal
21 Jul 2014
US drugs firm AbbVie has acquired Shire in a deal worth approximately £32 billion.
After four unsuccessful attempts to merge with Shire, US pharmaceuticals firm AbbVie has had its latest offer accepted by the Dublin-based drugs company.
To secure the deal, the US firm raised its fifth offer to £52.48 per share, which is made up of £24.44 in cash and 0.8960 new AbbVie shares.
“The combined company would benefit from a best-in-class product development platform
AbbVie CEO Richard A. Gonzalez
According to a statement released by Shire on Friday, the transaction will create a well-positioned and focused specialty biopharmaceutical company, with sustainable leadership positions within areas of unmet need, including immunology, rare diseases, neuroscience, metabolic diseases and liver disease (HCV) and multiple emerging oncology programmes.
AbbVie chief executive officer Richard A. Gonzalez said: “By combining AbbVie and Shire, we’re creating a unique, diversified biopharmaceutical company.
“The combined company would benefit from a best-in-class product development platform, a stronger pipeline and more enhanced R&D capabilities.”
According to Reuters news agency, AbbVie is buying Shire as a means of both cutting its US tax bill and its reliance on the arthritis drug Humira - the world’s top-selling medicine, and AbbVie’s biggest single source of revenue.
This multi-billion pound deal comes just two months after US-based pharmaceuticals giant Pfizer failed in its attempt to acquire UK drugs firm AstraZeneca in a deal that would have cost almost £70 billion.
The AbbVie/Shire merger is likely to conclude in the fourth quarter of this year.
