AbbVie Beats Out All Suitors: Buys Pharmacyclics in $21B Deal

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AbbVie Beats Out All Suitors: Buys Pharmacyclics in $21B Deal

After a flurry of rumors and speculation if Pharmacyclics would be bought (and by which company), the dust has finally settled: AbbVie made the announcement Wednesday night that it has an agreement in place to acquire Pharmacylics for $21 billion.

Media coverage:

SF Business Times: Three reasons why AbbVie bought Sunnyvale’s Pharmacyclics for $21B
AbbVie backs up aging Humira with $21B Pharmacyclics deal
AbbVie Snaps up Pharmacyclics, Pays Whopping $21B For Cancer Drug
AbbVie to Acquire Pharmacyclics: What Wall Street’s Saying
EP Vantage: 
A few unsung heroes from AbbVie’s desperate $21bn move
New York Times: 
AbbVie to Pay $21B for Pharmacyclics, Maker of a Best-Selling Cancer Treatment
ABC News/AP: AbbVie to Buy Leukemia Drugmaker Pharmacyclics for $21B
Surprise! Abbvie, not partner J&J, taking over Pharmacyclics for $21B
Bloomberg: Cancer Drug Once Bought for $7 Million May Now Fetch $18 Billion
Wall Street Journal: AbbVie to Buy Pharmacyclics in $21 Billion Deal

From the release:

“NORTH CHICAGO, Ill. and SUNNYVALE, Calif., March 4, 2015 /PRNewswire/ — AbbVie (NYSE:ABBV) and Pharmacyclics (NASDAQ: PCYC) today announced a definitive agreement under which AbbVie will acquire Pharmacyclics, and its flagship asset  Imbruvica® (ibrutinib), a highly effective treatment for hematologic malignancies.   The acquisition accelerates AbbVie’s clinical and commercial presence in oncology, strengthening its already robust pipeline, and establishing its strong leadership position in hematological oncology – an attractive and rapidly growing market, now approaching $24billion globally.  The acquisition adds to AbbVie’s already comprehensive pipeline and strong growth prospects.

Under the terms of the transaction, AbbVie will pay $261.25 per share comprised of a mix of cash and AbbVie equity.  The transaction values Pharmacyclics at approximately $21 billion and was approved by the Boards of Directors of both companies.

Imbruvica® is a Bruton’s tyrosine kinase (BTK) inhibitor approved for use in four indications to treat three different types of blood cancers including chronic lymphocytic leukemia, mantle cell lymphoma and Waldenstrom’s macroglobulinemia.  Imbruvica® received initial U.S. Food and Drug Administration (FDA) approval in 2013 and is the only therapy to have received three Breakthrough Therapy designations by the FDA.  It is currently approved in more than 40 countries.  Significant opportunity exists with further Imbruvica® indications, including solid tumors, the potential to leverage AbbVie’s immunology expertise for the development of Pharmacyclics’ immunology program, and advance AbbVie’s efforts in hematologic malignancies.

“The acquisition of Pharmacyclics is a strategically compelling opportunity.  The addition of Pharmacyclics’ talented and innovative team will add enormous value to AbbVie,” said Richard A. Gonzalez, chairman and chief executive officer, AbbVie.  “Its flagship product, Imbruvica®, is not only complementary to AbbVie’s oncology pipeline, it has demonstrated strong clinical efficacy across a broad range of hematologic malignancies and raised the standard of care for patients.”

“Team Pharmacyclics is honored and enthusiastic to join the AbbVie organization. We share a common purpose. Together and as one, our focus remains to create a remarkable difference for patient betterment around the world,” said Bob Duggan, chairman and chief executive officer, Pharmacyclics.”

Full release

March 5th, 2015|