As one company, our approximately 50,000 employees around the world are focused on discovering and delivering transformative medicines and products. By Michael Erman, Ankur Banerjee, Julie Steenhuysen AbbVie CEO Richard Gonzalez said the company was able to buy Allergan because of the massive amount of cash Humira generates. The corporate tax review under the Trump administration, which helped companies recover revenues earned abroad, also helped, he said. The main of these assets is Botox from Allergan, an injection of a purified form of botulinum toxin that paralyzes muscles, smooths expression lines and wrinkles on the forehead and around the eyes.
It is also approved to treat chronic migraines, overactive bladder, and other medical uses. But when used as a cosmetic treatment, patients must pay for Botox out of pocket, cushioning it from the price pressure that health insurers and government health agencies have imposed on prescription drugs. Gonzalez said he doesn't expect a biosimilar version of Botox “for a long, long time, if ever. The shares of other specialty drug manufacturers and potential targets Mylan NV, Bausch Health Co Inc and Teva Pharmaceutical Industries Ltd increased, and Teva Pharmaceutical Industries Ltd rose 7.6%.
AbbVie's board of directors decided about a year ago that the company needed a major acquisition before the U.S. He said he first approached Allergan CEO Brent Saunders six or seven weeks ago. At the end of April, Saunders traveled to Chicago for a meeting and returned a few weeks later to discuss the valuation. The combination of AbbVie and Allergan will be based in the AbbVie home in North Chicago.
Since then, Allergan has struggled to find new growth. Its shares have lost about half of their value and shareholders have pressured Saunders to separate or sell the company. Activist investor David Tepper also ran a campaign urging Allergan to hire an independent president. The transaction is expected to add 10% to AbbVie's adjusted earnings per share for the first full year after closing, the companies said.
Morgan Stanley and PJT Partners were financial advisors to AbbVie, while Kirkland %26 Ellis provided legal advice. JPMorgan Chase %26 Co was Allergan's financial advisor, and its legal advisors were Wachtell, Lipton, Rosen %26 Katz and Arthur Cox. Report by Mike Erman and Gregory Roumeliotis in New York, Manas Mishra and Ankur Banerjee in Bangalore and Julie Steenhuysen in Chicago; edition by Sriraj Kalluvila and Bill Berkrot. One of these rare side effects is a visible enlargement in the treated area that may develop two to five months after treatment, will not resolve on its own, and may require surgical intervention for correction.
Tell your doctor if you have any medical conditions, such as recent surgery, a pre-existing hernia, and any known sensitivities or allergies. The company manufactures several pharmaceuticals, including Botox (botulinum toxin), Juvederm (injectable filler), CoolSculpting (cryolipolysis), Alphagan (brimonidine), Vraylar (cariprazine HCI), Linzess (linaclotide) and Ubrelvy (ubrogepant).