On May 26th, 2015, AbbVie and Pharmacyclics announced their merger agreement that would bring the two pharmaceutical giants together in a strategic partnership. With AbbVie`s expertise in drug discovery, development, and commercialization, combined with Pharmacyclics` innovative research in oncology, the merger agreement would benefit patients worldwide.
Under the terms of the merger agreement, AbbVie would acquire Pharmacyclics for a total of $21 billion. This acquisition would give AbbVie access to Pharmacyclics` flagship product, Imbruvica, which has been approved by the FDA for the treatment of various types of cancer. Imbruvica is a targeted therapy drug that works by blocking the signals that cancer cells need to grow and divide.
The merger agreement between AbbVie and Pharmacyclics would also bring together two of the most innovative and dynamic research teams in the pharmaceutical industry. Both companies have long-standing commitments to research and development, and this merger would allow them to collaborate more closely, share resources, and accelerate the development of new treatments for patients.
Furthermore, the merger agreement would enable AbbVie to diversify its product pipeline, reducing its dependence on its blockbuster drug, Humira, which accounts for about two-thirds of the company`s revenue. With the addition of Imbruvica and other drugs in Pharmacyclics` pipeline, AbbVie would have a more extensive product portfolio, providing a better balance of revenue streams.
The merger agreement between AbbVie and Pharmacyclics was approved by both companies` boards of directors and was subject to regulatory approval. The acquisition was completed in May 2015, and Pharmacyclics became a wholly-owned subsidiary of AbbVie.
In conclusion, the merger agreement between AbbVie and Pharmacyclics was a strategic move that benefitted both companies, patients, and the pharmaceutical industry as a whole. The acquisition allowed AbbVie to diversify its product portfolio, reducing its reliance on one drug and providing a better balance of revenue streams. At the same time, it provided Pharmacyclics with the resources and expertise needed to continue developing innovative oncology treatments. It is an excellent example of how mergers and acquisitions can bring together two companies to create a stronger and more successful partnership.