Before the opening bell on Thursday, AbbVie (ABBV ) announced that it has agreed to acquire Pharmacyclics for about $21 billion.
AbbVie will acquire Pharmacyclics, the maker of hematologic malignancies treatment Imbruvica in a cash and stock deal worth $21 billion, or $261.25 per share. According to ABBV, the deal will be accretive to its 2017 earnings.
The acquisition will allow ABBV to increase its presence in the oncology space, which deals with fighting various cancers. This will also add to the drug company’s already robust drug pipeline.
The deal will consist of 58% cash, and 42% of ABBV’s common stock. It expected to close in mid-2015.
Richard Gonzalez, chairman and CEO commented: “The acquisition of Pharmacyclics is a strategically compelling opportunity…Its flagship product, Imbruvica, is not only complementary to AbbVie’s oncology pipeline, it has demonstrated strong clinical efficacy across a broad range of hematologic malignancies and raised the standard of care for patients.”
The Bottom Line
Shares of ABBV were down $3.09, or 5.13% during premarket trading Thursday. The stock is down 7.9% YTD.
AbbVie (ABBV ) is recommended at this time, holding a Dividend.com DARS™ Rating of 3.5 out of 5 stars.