AbbVie acquires Pharmacyclics for $ 21 Billion

AbbVie acquires Pharmacyclics for $ 21 Billion

AbbVie acquires Pharmacyclics for $ 21 Billion

AbbVie announced on Wednesday to buy Pharmacyclics, eventually best selling cancer treatment drug, for about $ 21 Billion although the main bidder was contemplated Johnson & Johnson.

 Under the terms of the deal, AbbVie will pay $261.25 per share in cash and stock deal. It is a 13 percent premium to closing price on Wednesday. Pharmacyclics, based in Sunnyvale, California, focuses on anticancer drugs. For example one-month treatment price of blood cancers can cost $ 9 000 or more.

 On Wednesday, Johnson & Johnson said: “We’re looking forward to continuing our collaboration with the team at AbbVie to further develop and commercialize this important therapy for patients and their health care teams.”

 The deal is the first by Abbvie after unsuccessful attempt to buy Shire, an Ireland-based drug maker.

 AbbVie advisors were Morgan Stanley and the law firm Wachtell, Liton, Rosen & Katz. Centerview Partners, JPMorgan Chase and the law firm Sonsini Goodrich & Rosati advised Pharmacyclics.

 Mr. Stakebay says:

 AbbVie needs diversification, because it’s best selling medicine Humira, which is used to various autoimmune diseases treatment gets almost two-thirds of its sales and trying to create a bigger focus in cancer treatment, although Humira will lose patent protection and it will face competition from biosimilars, near-generic copies, in the next few years.

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ABBVIE

PHARMACYCLICS

Revenue

$ 19.960 Billion (2014)

$ 729.729 Million (2014)

Operating income

$ 3.411 Billion (2014)

$ 122.381 Million (2014)

Profit

$ 1.774 Billion (2014)

$ 86.124 Million (2014)

Total assets

$ 27.547 Billion (2014)

$ 1.060 Billion (2014)

Total Equity

$ 1.742 Billion (2014)

$ 829.165 Million (2014)

Employees

 25 000 (2014)

484 (2014)

Chairman and CEO of ABBVIE…………….RICHARD A. GONZALEZ…2010-present………….$ 18 176 794 (2013)

Chairman and CEO of Pharmacyclics……..ROBERT W. DUGGAN…..2008-present..net worth $ 3.2 Billion (2014)

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