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AbbVie looks beyond Humira with Botox-maker Allergan

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AbbVie looks beyond Humira with Botox-maker Allergan

AbbVie looks beyond Humira with Botox-maker Allergan

Drugmaker AbbVie Inc said on Tuesday it would buy Botox-maker Allergan for about $63 billion, grabbing control of the biggest name in medical aesthetics to help reduce its reliance on blockbuster arthritis treatment Humira.

Fred Katayama reports.


AbbVie looks beyond Humira with Botox-maker Allergan

Once jilted at the altar by Pfizer, Botox-maker Allergan is sitting pretty Monday in a huge deal.

AbbVie is buying Allergan for about $63 billion.

The $188.24 per share offer is 45 percent higher than Allergan's closing price Monday.

Allergan, once a darling for Botox, dry eye drug Restasis and other beauty treatments, has been under pressure.

Analysts expected the company to break itself up.

Its shares had lost half their value following Pfizer's decision to walk away from its acquisition deal three years ago.

Pfizer's offer was 2-and-a-half times bigger than AbbVie's current bid.

AbbVie makes the blockbuster arthritis drug, Humira.

It was seeking to diversify its lineup because Humira faced competition from cheaper versions in Europe.

Reuters Breakingviews Analyst Rob Cyran SOUNDBITE: REUTERS BREAKINGVIEWS ANALYST ROB CYRAN SAYING: "AbbVie did very well for years just because they had this one drug which was fantastic.

But as the drug's getting older, investors are saying OK-- they can see the end coming, the shares have come under a lot of pressure in the past year or 2 years.

And Allergan kind of a similar thing- all the deals looked great for a while but now investors have been saying-what have you done, you've over paid for all these assets, what new deals can you do, so they're starting to question how viable this business is in the future.

So you have 2 weak, kind of flabby companies getting together and the selloff today in AbbVie shares suggests that investors are saying, it's not going to solve their problems." AbbVie shares fell 15 percent Tuesday afternoon.

Allergan's shares shot up 27 percent.

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