Pre-Market: 7:50AM EDT
|Bid||0.00 x 1000|
|Ask||167.00 x 900|
|Day's Range||127.76 - 130.67|
|52 Week Range||114.27 - 197.00|
|Beta (3Y Monthly)||1.63|
|PE Ratio (TTM)||N/A|
|Earnings Date||Jul 24, 2019 - Jul 29, 2019|
|Forward Dividend & Yield||2.96 (2.26%)|
|1y Target Est||177.60|
(Bloomberg) -- AbbVie Inc. has agreed to pay $63 billion for rival drugmaker Allergan Plc, the latest huge merger in a pharmaceutical sector rapidly being reshaped by deals. AbbVie said it will pay $188.24 a share for Allergan, a 45% premium to Allergan’s closing price on Monday. Allergan shares rose 31% to $169.95 in pre-market trading in the U.S. early Tuesday.The takeover offers a solution to long-standing challenges both companies have grappled with. AbbVie finally gets a set of products big enough to diversify its revenue from Humira, the top-selling rheumatoid arthritis injection that dominates its sales. And Allergan’s shareholders will get a profitable exit after a four-year slide in the stock.The deal is also evidence that even the world’s biggest drugmakers believe they can get bigger. In January, Bristol-Myers Squibb Co. announced a $74 billion deal for Celgene Corp., and Japan’s Takeda Pharmaceutical Co. earlier this year completed a $62 billion takeover of Shire Plc. A combined AbbVie and Allergan will have sales of about $48 billion, the companies said in a statement, making it one of the biggest drugmakers in the world.The large mergers have begun to attract the notice of antitrust authorities. On Monday, Bristol-Myers said it had agreed to divest one of Celgene’s biggest products, the psoriasis pill Otezla, in order to appease regulators at the U.S. Federal Trade Commission. While there are not major areas of overlap between Allergan and AbbVie, the deal is almost certain to get a similar look from governments that have begun to look more closely at the takeovers.Allergan holders will receive 0.8660 AbbVie shares and $120.30 in cash for each share they hold. AbbVie will take on Allergan’s debt, which totaled about $24 billion at the end of the first quarter.Two Allergan directors, including Chief Executive Officer Brent Saunders, will join AbbVie’s board after the purchase is completed, according to the statement. Saunders had spent months turning over options for Allergan as the drugmaker’s stock price dropped from a 2015 peak of almost $340. Those options included selling off the company’s gastrointestinal drugs or women’s health unit, which would have left the company more focused on its profitable medical aesthetics line that includes the wrinkle treatment Botox. AbbVie said it expects at least $2 billion in annual pretax synergies and other cost reductions in year three of the deal. About half of that will come from optimizing the research and early-stage portfolio of products and cuts in overlapping R&D resources, while the rest will come from sales, general and administrative expenses and costs for manufacturing, supply chain and procurement. The deal is expected to close in early 2020, the companies said. Morgan Stanley & Co. acted as AbbVie’s financial adviser and Kirkland & Ellis LLP and McCann FitzGerald were legal advisers. JPMorgan Chase & Co. was AbbVie’s financial adviser, and Wachtell, Lipton, Rosen & Katz and Arthur Cox gave legal advice.(Updates with details throughout.)\--With assistance from Marthe Fourcade.To contact the reporter on this story: Drew Armstrong in New York at firstname.lastname@example.orgTo contact the editor responsible for this story: Eric Pfanner at email@example.comFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
U.S. stock futures were pulled lower by Iran tensions and trade worries on Tuesday, with investors focusing on Federal Reserve officials for more clarity on interest rates. In a dramatic and unprecedented move, President Donald Trump on Monday imposed new sanctions on Iran's supreme leader and foreign minister, a decision Tehran said closed the path to diplomacy between the countries.
Moody's Investors Service ("Moody's") affirmed the ratings of AbbVie Inc. ("AbbVie") including the Baa2 senior unsecured long-term rating and the Prime-2 short-term rating. This rating action follows the announcement that AbbVie will acquire Allergan plc ("Allergan") in a transaction valued at approximately $63 billion plus debt, to be funded with cash, debt and equity. The acquisition will reduce AbbVie's reliance on Humira, which will face US biosimilar competition in early 2023.
US drugmaker AbbVie has agreed to buy Allergan, the Irish-domiciled maker of Botox, in a deal worth about $63bn that marks the latest blockbuster transaction in the healthcare business this year. The deal announced on Tuesday will see AbbVie pay $188.24 for each share of Allergan, made up of $120.30 in the form of cash and the remainder in stock. Allergan’s portfolio is best known for Botox, a wildly popular non-surgical cosmetic treatment, but the company also makes drugs that are used in eyecare, gastroenterology and treating the central nervous system.
AbbVie will pay $188.24 each in cash and shares for Allergan's outstanding common stock, a 45% premium to the group's Monday closing price, in a deal that would value the Botox maker at around $63 billion. AbbVie said the deal will add around 10% to the group's adjusted earnings in the first year, and will be incorporated in Delaware upon completion. AbbVie's Richard Gonzalez will continue as chairman and Chief executive officer, the company said, and its main headquarters will remain in North Chicago, Illinois.
AbbVie Inc. confirmed Tuesday a deal to buy pharmaceutical company Allergan PLC , in a deal with equity value of $63 billion. Allergan's stock soared 30% in premarket trading while AbbVie shares tumbled 9.9%. Under terms of the deal, Allergan shareholders will receive 0.8660 and $120.30 in cash for each Allergan share they own, which based on Monday closing prices values Allergan shares at $188.24 each, a 45.3% premium. Based on 327.8 million shares outstanding as of May 3, the per-share bid represents a market-capitalization for Allergan of $61.71 billion. Earlier Tuesday, The Wall Street Journal had reported AbbVie was near a deal to buy Allergan for $188 a share, or over $60 billion. AbbVie expects the deal to provide annual synergies and other cost reductions of at least $2 billion, and is expected to be 10% accretive to adjusted EPS over the first full year following the close of the deal, which is expected to occur in early 2020. Allergan's stock has dropped 11.5% over the past three months and AbbVie shares have slipped 1.3%, while the S&P 500 has gained 5.3%.
AbbVie Inc said on Tuesday it would buy Botox-maker Allergan Plc in a cash-and-stock deal for about $63 billion to add fast-growing therapeutic businesses such as medical aesthetics and eye care. Allergan shareholders will receive 0.8660 AbbVie shares and $120.30 in cash for each share held, for a total consideration of $188.24 per Allergan share, a premium of 45% to Allergan's Monday close. AbbVie will continue to be incorporated in Delaware as AbbVie Inc and will be led by Richard Gonzalez as chairman and chief executive officer.
AbbVie has been under pressure to diversify its portfolio as Humira, the world's best-selling drug, faces competition from cheaper versions in Europe. Allergan Chief Executive Officer Brent Saunders put together the current version of the company through a series of deals to roll up several pharmaceutical firms in 2014, and has run the company since then. Allergan's shares have lost around half their value since then.
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Shares of Allergan PLC soared 35% toward an 8-month high in premarket trading Tuesday, after The Wall Street Journal reported that AbbVie Inc. was close to a deal to buy the pharmaceutical company. AbbVie's stock dropped 6.0% ahead of the open. The WSJ report said AbbVie would pay $188 in cash and stock for each Allergan share outstanding, which is 45% above Monday's closing price of $129.57. With 327.8 million shares outstanding as of May 3, the deal would value Allergan at about $61.6 billion. AbbVie's market capitalization as of Monday's close was $115.98 billion. Allergan's stock has declined 24.3% over the past 12 months through Monday and AbbVie shares have lost 15.7%, while the SPDR Health Care Select Sector ETF has climbed 10.8% and the S&P 500 has advanced 8.4%.
The U.S. Food and Drug Administration has approved Allergan Plc's CoolTone device for use in strengthening, toning and firming the abdominal area, buttocks and thighs, Allergan said Monday. CoolTone uses magnetic muscle stimulation to penetrate muscle layers, which then causes involuntary muscle contractions. The body responds to the contractions by strengthening muscle fibers, leading to increased muscle tone. The drugmaker said CoolTone has 50% more magnetic intensity than the leading competitor, but that claim has not been clinically established. Allergan also makes the CoolSculpting device, a non-surgical fat-elimination device that works by freezing and killing fat cells in targeted areas like the abdomen, flanks or under the chin. Shares of the drugmaker have fallen 3.4% so far this year, but were down as much as 12.5% in June before buzz of a possible company split helped bolster the stock price. Allergan has been dealing with some significant issues in the past year -- investors are worried about the future of Botox, the company's biggest earner, as it faces competition in the anti-wrinkle and injectable migraine treatment markets. Investors were also rattled by the failure of depression drug rapastinel -- once considered by many to be Allergan's next big blockbuster drug -- in clinical trials earlier this year. In May, Chief Executive Brent Saunders said he had heard investors' concerns "loud and clear," adding that "everything is on the table," including the possibility of splitting the company up.
Allergan's (AGN) Botox gets FDA approval for the 10th therapeutic indication, upper limb spasticity in pediatric patients, in the age group of 2 to 17 years.
DUBLIN, June 24, 2019 /PRNewswire/ -- Allergan plc (AGN) today announced CoolTone device received FDA clearance for improvement of abdominal tone, strengthening of the abdominal muscles, and development for firmer abdomen. "As the global leader in medical aesthetics and body contouring, Allergan invests in the ongoing innovation and advancement of safe and effective non-surgical aesthetic solutions," said Brad Hauser, Vice President, R&D and General Manager, Body Contouring, Allergan.
Allergan PLC said Friday that its supplemental biologics application (sBLA) for Botox for the treatment of upper limb spasticity in pediatric patients, from ages 2 to 17, was approved by the U.S. Food and Drug Administration. Botox was granted a 6-month Priority Review by the FDA. Upper limb spasticity often results in muscle tightness and stiffness, and can interfere with movement at the joints. Common causes of spasticity in children include cerebral palsy, traumatic brain injury, multiple sclerosis, spinal cord injury and stroke. Allergan said the FDA is also reviewing an sBLA for the use of Botox to treatment pediatric patients with lower limb spasticity, and expects a decision by the end of the year. Allergan's stock, which is still inactive in premarket trade, has fallen 15% over the past three months, while the SPDR Health Care Select Sector ETF has gained 1.1% and the S&P 500 has tacked on 3.5%.
DUBLIN, June 21, 2019 /PRNewswire/ -- Allergan plc (AGN) today announced that the U.S. Food and Drug Administration (FDA) approved the company's supplemental biologics application (sBLA) for BOTOX® for the treatment of pediatric patients (2 to 17 years of age) with upper limb spasticity. BOTOX® was granted a six-month Priority Review by the FDA, which is typically granted to therapies that if approved, could offer significant improvements in safety and effectiveness when compared to current standard of care.
Allergan's (AGN) shares up following a conference call with one of the company's executives, which led an analyst to believe that a split of the company's business is in the cards.
[Editor's note: This story was previously published in February 2019. It has since been updated and republished.]Overall, the stock market has made a huge improvement in the first half of 2019 from where it ended in 2018; it has been a complete turnaround from last year's drop, when stocks entered bear-market territory.But even though many stocks have completely erased all of their losses and made it back into the green, not all stocks have done so well. What this means is that while there are still plenty of duds out there, there are also a few undervalued stocks to buy; it has just become a little trickier to find them amid all the flashy comeback stories.InvestorPlace - Stock Market News, Stock Advice & Trading TipsTo find the best stocks to buy now,disciplined investors might start with their own watch list, which should contain "wish list" stocks that are usually too expensive or have been put there to be on the backburner for later. Among such stocks, companies that got left out of the rally are the most compelling. Even better, the best undervalued stocks to buy are those that dropped by double-digit percentages during the current rally.Why is that?Markets that are pricing in the negative news typically lower the risk for investors. Such companies may work to resolve the business problem at hand, which improves its prospects and leads to a higher share price in the long run. As long as the bad news reported is a temporary setback and the business model is not broken, the risks behind buying a stock on a dip are lower. * 6 Stocks Ready to Bounce on a Trade Deal With all of that in mind, here are five undervalued stocks to buy that aren't as scary as they seem. Sony (SNE)Investors expected more from Sony's (NYSE:SNE) earnings report when the company posted results on Feb. 1. Revenue of 2.4 trillion yen in the third-quarter missed estimates for 2.67 trillion yen.Adding salt to the wound, many SNE investors are fretting over Sony's weaker sales outlook, with smartphone and camera sales lagging. On the flipside, the PlayStation 4 business still could rebound. Even though the console cycle is many years old, customers will continue to buy new game titles. And in the smartphone space, a refresh in the second half of this year may give customers a reason to buy a new Sony device again.Trading more than 10$ below its 52-week high, Sony stock clearly deserves its spot among the best undervalued stocks to buy now. Celestica (CLS)Celestica (NYSE:CLS) reported fourth-quarter revenue of $1.73 billion, up 10% from last year. Net earnings rose $46.5 million to $60.1 million, bringing in earnings of 44 cents a share. However, investors were unimpressed with the weak sequential revenue in its Communications, ATS and CCS segments, which were either flat or down. Still, revenue from all segments grew in the double digits from last year.Celestica ended the year with $422 million in cash and cash equivalents. Net cash fell $335 million for the year. And the balance sheet is not as strong as it could be, with non-IFRS debt leverage at 2.6X.The company supplies equipment in ATS -- aerospace and defense, industrial, smart energy, health tech and capital equipment. Its enterprise unit consists of servers and storage. Why then, should investors believe the company will offset the weakness it faces in the eroding semiconductor market?Celestica is cutting costs in operations to align the business with the lower revenue. It will continue to build its capital equipment business. Management believes the fundamentals in this space will only improve in the long run. As next-generation adoption in display continues, its OLED business, for example, will add to its bottom line.Celestica stock is an undervalued play worth considering. Allergan (AGN)Generic drug supplier Allergan (NYSE:AGN) fell over 10% in late January and early February for two reasons. First, its fourth-quarter earnings report did not please investors. Operating income sank 11.8% year-over-year, and revenue fell 5.8% YoY to $4.08 billion.On Feb. 1, the Food and Drug Administration approved Evolus' (NASDAQ:EOLS) Jeuveau. This product competes directly with Allergan's Botox. Pricing could come in at 20% below that of Botox, putting pressure on Allergan's bottom line.Be warned: it's likely that AGN stock will continue to sell off as investors price in the worst case scenario for Botox. Even though management already expects some pricing erosion, it is confident that the sales volume will taper off slowly. But this is good news for investors in search of a bargain, as the more the stock falls, the more discount value investors get on AGN stock.As Allergan launches new products this year, it will offset the negative impact of generic drug competition for Botox, making it an undervalued stock to watch. Innoviva (INVA)Innoviva (NASDAQ:INVA) is another stock in the drug space whose large drop starting in late January appears greatly overdone. The market all but erased the powerful uptrend in the stock that began after INVA sold off in November 2018 and bottomed at $14.The FDA approved Mylan's (NASDAQ:MYL) generic version of Advair, which GlaxoSmithKline (NYSE:GSK) produces. This forced investors to worry about Innoviva's prospects because the company is paid royalties from Glaxo. In the third quarter, Innova received $65.1 million in royalty revenues from Glaxo; $51.7 million came from global net sales of Revar/Breo Ellipta.On Feb. 6, Innoviva reported revenue of $79.86 million, up 14.9% from last year. With the stock trading at a forward price-to-earnings ratio of 9.3, the price-earnings-to-growth ratio is 0.45. As such, this general pessimism has created an appealing entry point to INVA stock. * 6 Stocks Ready to Bounce on a Trade Deal Investors appear to be overreacting to the generic competition. If demand for Innoviva's formulation does not drop and prices hold, royalty revenues should not fall as much as markets think, which makes INVA an ideal undervalued stock to buy now. Vodafone (VOD)Telecom stocks are out of favor.. But Vodafone (NASDAQ: VOD) is down the most among the major names in the sector, falling over 35% from its 52-week high.Third-quarter results for VOD, which ended on Dec. 31, missed analysts' consensus sales forecasts. Vodafone continued to under-perform in Europe, due to rising competition. Although the company highlighted improving customer trends in Italy, Germany, and reduced churn in Spain, this was not enough to prevent revenue falling 5.6% in Europe and 6.8% overall.With all that bad news, it is little wonder why the stock has been marching lower. But VOD still has ways to mend the wound. The company could trim the dividend and re-allocate its resources toward advertising and capital expenditures. That would put it in a better position to compete with its European counterparts. And the stock would respond if those efforts lead to better revenue numbers.Vodafone shares pay a dividend yield of nearly 6%. If Vodafone grows its U.K. business as it signs on users to its 5G services and cuts costs as it signs on more customers, VOD stock will finally move higher.As of this writing, Chris Lau owned shares of Innoviva. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Blue-Chip Stocks to Buy for a Noisy Market * 5 Strong Buy Biotech Stocks for the Second Half * 6 Stocks Ready to Bounce on a Trade Deal Compare Brokers The post 5 Undervalued Stocks to Buy appeared first on InvestorPlace.
On March 6, Allergan (AGN) issued a press release announcing the failure of its investigational therapy rapastinel to meet the primary and secondary end points in three pivotal trials evaluating it as an adjunctive therapy in combination with antidepressant therapy in major depressive disorder indications.
Ironwood (IRWD) and Allergan's Linzess meets the goal in a late-stage study for treating adult patients with IBS-C. Shares rise as the drug reduces bloating, pain and discomfort in IBS-C patients.
The S&P 500 approached a record high on Wednesday after the Federal Reserve signaled potential interest cuts later this year, reassuring investors worried that the U.S.-China trade war could stall economic growth. In its statement following a two-day policy meeting, the Fed held rates steady, as expected, but dropped a previous promise to be "patient" in adjusting rates. "We think the Fed delivered.