AbbVie Inc is making a cash and stock offer valued at $63 billion for the specialty pharma company Allergan Plc, a move that will diversify its portfolio ahead of the loss of patent protection for its lead rheumatoid arthritis product Humira (adalimumab). Humira generated revenue of $20 billion last year, or 68% of AbbVie’s total revenue, but it will lose patent protection in 2023.
The offer is about four times Allergan’s 2018 revenue of $15.8 billion and represents a premium of 45% over the target company’s closing share price on 24 June. Allergan is based in Dublin, Ireland.