The new combined company will consist of franchises across immunology, hematologic oncology, medical aesthetics, neuroscience, women’s health, eye care and virology.
“This is a transformational transaction for both companies and achieves unique and complementary strategic objectives,” Richard Gonzalez, AbbVie’s chairman and chief executive officer, said in a news release. “The combination of AbbVie and Allergan increases our ability to continue to deliver on our mission to patients and shareholders.”
“With our enhanced growth platform to fuel industry-leading growth, this strategy allows us to diversify AbbVie’s business while sustaining our focus on innovative science and the advancement of our industry-leading pipeline well into the future,” he added.
The companies’ aligned strategies focus on new growth platforms and leadership positions that will diversify and expand AbbVie’s revenue base while enhancing Allergan’s commercial strength, and international infrastructure. Other benefits of the acquisition, according to AbbVie, include enhanced profitability for the combined company, whose success would fund pipeline investment, debut reduction, and capital return to shareholders.
AbbVie will continue to operate in Delaware, and have its principal executive offices in North Chicago, Ill. The company will continue to be led by Gonzalez. Two members of Allergan’s board, including Saunders, will join AbbVie’s board upon completion of the transaction.
The companies expect the deal to close by early 2020.