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AbbVie And Pharmacyclics

11 October 2015 |

AbbVie, a global biopharmaceutical company, completed the $21 billion acquisition of Pharmacyclics on the 26 May 2015. In doing so, AbbVie beat competitor Johnson & Johnson to the punch following the development of a race to acquire Pharmacyclics. AbbVie gave Pharmacyclics shareholders three options.

Option 1 (mixed consideration) - Pharmacyclics shareholders who elected to receive mixed consideration received $152.25 in cash and 1.6639 AbbVie ordinary shares in exchange for each of their Pharmacyclics shares.

Option 2 (all cash consideration) - Pharmacyclics shareholders who opted for the all cash consideration received $261.25 for each of their Pharmacyclics shares.

Option 3 (all share consideration) - Pharmacyclics shareholders who opted for the all share consideration received 3.9879 AbbVie ordinary shares for each of their Pharmacyclics shares.

AbbVie believes that the acquisition will enable it to position itself as the market leader in the market for oncology treatments. Abbive stated that Pharmacyclics brings great expertise in kinase biology and oncology discovery, while AbbVie brings strong pre-clinical discovery and development capabilities in oncology. It was suggested that this newly combined oncology franchise would contribute significantly to sales revenue. The management of Abbvie has predicted that the potential synergies involved in the acquisition will be evidenced as early as 2016, when the transaction is expected to boost the earnings per share of Abbvie.

Morgan Stanley provided financial advice to AbbVie and Wachtell, Lipton, Rosen & Katz provided legal advice.

J.P. Morgan provided financial advice to Pharmacyclics and Wilson Sonsini Goodrich & Rosati provided legal advice.