AbbVie sweetens pot of Shire offer to the tune of $53 billion
DUBLIN — Shire on Monday announced that the company requested and has received a revised proposal from AbbVie on Sunday that would value a proposed merger deal at $53 billion.
The revised proposal comprises £24.44 in cash ($41.82) and 0.8960 shares of new AbbVie per Shire share. Based on the AbbVie share price on July 11, AbbVie’s revised proposal has an indicative value of £53.20 ($91.04) per Shire share.
Under the revised proposal, Shire shareholders would own approximately 25% of the combined new AbbVie.
The board of Shire has indicated it would recommend the deal subject to satisfactory resolution of the other terms of the offer. Accordingly, the board is in detailed discussions with AbbVie in relation to these terms, Shire announced.
"There can be no certainty that any firm offer will be made," Shire stated. "This statement is being made by Shire with the agreement of AbbVie."
AbbVie believes the combination of the two companies would enhance innovation and end-to-end R&D capabilities, generating a best-in-class product development platform, with near-term new product launches in liver disease (HCV), neuroscience, immunology, oncology, rare diseases, ophthalmology and renal. AbbVie noted that its track record of product optimization is evidenced by its growth of the Humira franchise through increased penetration in existing indications, geographic expansion, and approvals for new indications.
According to a Wall Street Journal report, a Shire acquisition would help diversify AbbVie's current focus on anti-inflammatory, HIV and cancer drugs and reduce its dependence on Humira before its U.S. patent expires in 2016. Shire's portfolio of drugs include Vyvanse, which is indicated for attention-deficit disorder, and treatments for rare genetic diseases like Hunter syndrome.