AbbVie Inc. (ABBV.N) agreed to buy Pharmacyclics Inc. (PCYC.O) for a mega $21 billion deal. They have beaten the interest of Johnson & Johnson in order to take control of one of the world`s top selling drug company.
Market analysts also suggested that this will also help AbbVie to flex their muscle in the lucrative field of Oncology. In a statement AbbVie said, they will pay $261.25 per share which consists of cash and AbbVie equity. It was also reported that the price per share is 39% higher than the Pharmacyclics`s closing price on 24th February. The possibility of a deal between AbbVie and Pharmacyclics was first reported by Bloomberg on 25th February.
According to the Healthcare Industry experts this deal will help AbbVie to expand their business into the cancer therapy treatment, one of the most promising areas of drug development. It was also suggested that this deal will also help AbbVie to reduce its dependency on their successful drug Humir which is used for Rheumatoid Arthritis treatment. It was reported that, AbbVie will have the access to Imbruvica an easy-to-use $100,000 a year pill, which has the approval to be used in four different type of blood cancer. Health experts also confirmed that Imbruvica lessens certain serious side effects of Chemotherapy.
It was previously reported that Pharmacyclics and Johnson & Johnson have reached an agreement. It was also suggested that the price per share was agreed at $250. But in the last minute AbbVie increased their offer and acquired Pharmacyclics. But it was said that, the detail of the agreement remains to be private. When asked about the detail Amy Jo Meyer, a J&J spokeswoman, declined to comment. Although in a statement, J&J said: “We’re looking forward to continue our collaboration with the team at AbbVie to further develop and commercialize this important therapy for patients and their health care teams.”
Market analysts said, this recent deal is the latest example of a tie up between big Drug maker and Biotech firms.
