AbbVie, a renowned pharmaceutical company, has unveiled its plans to acquire Cerevel Therapeutics, a neuroscience drugmaker, in a substantial deal amounting to approximately $8.7 billion. The acquisition, aimed at bolstering AbbVie’s drug pipeline, is anticipated to be finalized by the middle of 2024, pending regulatory approvals and customary closing conditions. This strategic move comes as AbbVie seeks to diversify its portfolio amidst increasing generic competition for its flagship drugs, notably Humira.
Climbing by 16% after the closing bell on
Under the agreed terms, AbbVie will pay $45 per share for Cerevel, a price that reflects the perceived value of the neuroscience-focused company. Following the announcement, shares of Cerevel experienced a significant surge, climbing by 16% after the closing bell on Wednesday to nearly $43 per share, positioning them just below the agreed-upon purchase price. In contrast, AbbVie’s shares witnessed a marginal decrease of less than 1% during extended trading.
This acquisition is part of AbbVie’s ongoing efforts to fortify its drug development pipeline, supplementing its portfolio with promising assets. Just last week, the pharmaceutical giant also agreed to acquire Immunogen, a cancer drug developer, for an approximate sum of $10 billion. These strategic investments underscore AbbVie’s commitment to securing its position in the pharmaceutical industry and addressing evolving market dynamics.
Cerevel, with its focus on neuroscience, brings a valuable addition to AbbVie’s capabilities, particularly in the treatment of psychiatric and neurological disorders where substantial unmet needs persist. The acquisition includes Cerevel’s diverse drug portfolio, featuring innovative treatments such as Emraclidine. Currently undergoing a phase one study in elderly volunteers, Emraclidine holds promise as an experimental treatment for both schizophrenia and Alzheimer’s disease psychosis, addressing symptoms like hallucinations and delusions.
Part of a broader trend in the pharmaceutical industry
Richard Gonzalez, CEO and Chairman of AbbVie expressed optimism about the growth prospects resulting from the collaboration, stating, “Our existing neuroscience portfolio and our combined pipeline with Cerevel represents a significant growth opportunity well into the next decade.” He emphasized AbbVie’s commitment to leveraging its commercial capabilities, international infrastructure, and regulatory expertise to unlock substantial shareholder value, with the potential for multibillion-dollar sales across Cerevel’s asset portfolio.
To provide further insights into the acquisition, AbbVie has scheduled an investor conference call on Thursday at 8:00 a.m. ET. During this call, the company is expected to elaborate on the strategic rationale behind the deal, potential synergies, and the long-term vision for the combined entity.
It is worth noting that AbbVie’s proposed acquisition of Cerevel is part of a broader trend in the pharmaceutical industry, where companies are actively pursuing mergers and acquisitions to fortify their positions, expand their product offerings, and address emerging challenges. The deal remains subject to regulatory approvals and customary closing conditions, and stakeholders await further details during the investor conference call, which promises to shed light on the intricacies of this transformative transaction.
