===Cerevel Therapeutics (CERE) to be acquired by AbbVie (ABBV) for $45.00/share in cash

 

AbbVie confirms it will acquire Cerevel Therapeutics (CERE) for $45.00/share in cash; total equity value of approximately $8.7 bln; to be accretive to EPS in 2030

• Under the terms of the transaction, AbbVie will acquire all outstanding shares of Cerevel (CERE 36.93 +1.34) for $45.00 per share in cash. The transaction values Cerevel at a total equity value of approximately $8.7 billion. The boards of directors of both companies have approved the transaction. This transaction is expected to close in the middle of 2024, subject to Cerevel shareholder approval, regulatory approvals, and other customary closing conditions.
• Proposed acquisition adds robust pipeline of assets focused on best-in-class potential for psychiatric and neurological disorders where significant unmet needs remain.
• Cerevel's clinical-stage pipeline complements AbbVie's current on-market portfolio and emerging neuroscience pipeline.
• Emraclidine has the potential to transform the standard of care in schizophrenia and other psychiatric conditions.
• The proposed transaction is expected to be accretive to ABBV's adjusted diluted earnings per share beginning in 2030

==ImmunoGen (IMGN) to be acquired by AbbVie (ABBV) for $10.1 billion

 

AbbVie (ABBV) has agreed to buy ImmunoGen (IMGN) for $10.1 billion in cash, offering a rich premium for the maker of ovarian cancer treatment drug Elahere, the company said Thursday. AbbVie will pay $31.26 per share for IMGN stock. That's a roughly 95% premium to the biotech firm's closing price on Wednesday.

AbbVie, based in North Chicago, Ill., said it expects to complete the acquisition in the middle of 2024.

"The acquisition of ImmunoGen demonstrates our commitment to deliver on our long-term growth strategy and enables AbbVie to further diversify our oncology pipeline across solid tumors and hematologic malignancies," AbbVie Chief Executive Richard Gonzalez said in a statement.

IMGN Stock: Daiichi Competition

On today's stock market, IMGN stock popped 82.8% to close at 29.35. ABBV stock rose 2.8% to 142.39.

Waltham, Mass.-based ImmunoGen is a leader in the field of antibody-drug conjugates (ADCs) for the treatment of cancer.

Elahere is a treatment for patients with a specific form of ovarian cancer. It targets a receptor called folate receptor alpha.

In a note to clients, Truist Securities analyst Asthika Goonewardene said Elahere faces growing competition from Daiichi. "However with a partner like AbbVie, who has much deeper pocket and marketing prowess, we anticipate Elahere will be able to compete better against Daiichi's R-DXd, and leverage its early mover advantage," Goonewardene said.

AbbVie reported third quarter earnings that topped estimates, but sales of its Humira arthritis therapy drug continued to plummet.

During the September quarter, AbbVie earned an adjusted $2.95 per share on $13.93 billion in revenue. Earnings for AbbVie came in better than expectations for $2.87 a share, but skidded 19.4% year over year.

AbbVie's Humira Sales Tumble

Meanwhile, Humira sales tumbled 36% to $3.55 billion following the launch of biosimilar rivals this year in the U.S.

Also, sales of aesthetic treatments, which includes AbbVie's Botox, fell 4.7% on a reported basis to $1.24 billion.

On Nov. 2, ImmunoGen reported better-than-expected earnings and sales, lifting IMGN stock. The company earned 10 cents a share on sales of $113.4 million. In the year-ago period, ImmunoGen lost 31 cents a share. Sales surged 638% year over year.

===AbbVie (ABBV) reported earnings on Thur 9 Feb 23 (b/o)

 

AbbVie beats by $0.02, misses on revs; guides FY23 EPS below consensus; excludes impact from acquired IPR&D and milestones 

• Reports Q4 (Dec) earnings of $3.60 per share, excluding non-recurring items, $0.02 better than the S&P Capital IQ Consensus of $3.58; revenues rose 1.6% year/year to $15.12 bln vs the $15.30 bln S&P Capital IQ Consensus.
• Co issues downside guidance for FY23, sees EPS of $10.70-11.10, excluding non-recurring items, vs. $11.68 S&P Capital IQ Consensus.
  • Co's 2023 adjusted diluted EPS guidance excludes any impact from acquired IPR&D and milestones that may be incurred during 2023, as both cannot be reliably forecasted.
• Co added, "Looking forward, we have a solid foundation which will allow us to absorb the U.S. Humira loss of exclusivity, return to strong top-line growth in 2025 and drive top-tier financial performance over the long term."

Earnings this week : Feb 6 - 10, 23 (wk 6)

Monday (Feb 6)

• Morning:  AMG CNA CMI ENR IDXX NBIX ON TKR TSN
• Afternoon: ATVI ACM AOSL BRBR CHGG CINF DIOD FN KMT KFRC LEG NOV PINS POWI RMBS SPG SSD SKY SWKS SAVE TTWO UDR VRNS ZI

Tuesday (Feb 7)

• Morning: ADNT AGCO ARMK ARCC BP BV CG CARR CTLT CNC CTS DCPH DD FISV IT GPK HAE HAIN HLNE HTZ INCY J KKR LIN MAC MBUU MSGS NVT OMF PINC RCL SCSC SPR TDG VVV XYL
• Afternoon:  AMCR AIZ ATO BKH CSL CMG CNO CCK DEI EGP EHC ENPH ESS EEFT EXEL FMC FTNT FRSH HRB PEAK HIW HMN ICHR ILMN INSP JKHY RAMP LUMN MODN NCR NEWR OMC PAYC PRU QGEN RRR RXO SIMO SSNC TENB VFC VRTX VSAT VOYA WERN WU YUMC ZWS

Wednesday (Feb 8)

• Morning:  BDC BXMT BG CPRI CDW CRNC CME COHR COTY CRTO CVS D ETN EPC EMR FOXA GPRE INGR NYT PAG PFGC PERI RDWR REYN RITM SITC TRMB UBER VSH YUM
• Afternoon:  ME AEIS AFRM AB NLY APP ASGN AVB ACLS AZEK CDAY CXW DHT APPS ENS NVST EFX EQH EQC ESE RE FRT FR FLT FLNC FORM FWRD ULCC GT HI HPP PI IFF FROG LNC MAT MMS MGM MC MOH MPWR ORLY PTEN PYCR PDM PPC PAA QNST RDN RPD REXR HOOD SON SONO STE STC SLF THC TTMI TWO DIS WTS XPO

Thursday (Feb 9)

• Morning: ABBV APO MT ARES AZN BAX BWA BRKR CCJ CGC CSII CIGI CYBR DBD DUK ESMT FAF GTES HLT HIMX HII NSIT NSP IPG ITT K KIM LITE MAS MDU MSGE NNN PATK PEP PM PDS RL SPGI SEE SSTK SWI TPR TTGT TU TPX TRI WMG WEX WTW
• Afternoon:  AYX BE BHF CBT CC NET ROAD OFC CRSR COUR CUZ DXCM DOCS EQR EXPE FLO G KN LGF.A LYFT MTD MHK MSI NWSA ONTO OSCR PYPL PECO PRO QLYS RBC REG SPSC STEP TEX MODG VTR VRSN YELL YELP

Friday (Feb 10)  

• Morning:  ENB ESNT FTS GPN IQV MGA COOP NWL PRLB SXT SPB SLVM WPC

AbbVie (ABBV) : FDA warning on the company's arthritis drug Rinvoq

• FDA said makers of janus kinase inhibitors, or JAK inhibitors, would have to warn users against a myriad of conditions. The requirement impacts AbbVie's Rinvoq, Pfizer's Xeljanz and Lilly's Olumiant. All three are JAK inhibitors for arthritis and other inflammatory conditions.

The order also impacts drugs from Pfizer (PFE) and Eli Lilly (LLY). A recent test of Pfizer's Xeljanz indicated the drug increases the risk of heart issues, blood clots, cancer and death in patients treated for arthritis and other inflammatory conditions. AbbVie's (ABBV) Rinvoq and Lilly's Olumiant belong to the same drug class.

Recently, AbbVie said it plans to test a next-generation version of Alzheimer's drug Aduhelm beginning late this year or early next. Aduhelm, a Biogen (BIIB) drug, gained approval in June and helped shift researchers' focus to the beta amyloid theory of treatment.

Beta amyloid is a type of plaque that builds up in the brains of Alzheimer's patients. Some believe removing it will help improve patients' cognition. The theory doesn't have full support from the scientific community, however. On the company's second-quarter earnings call, AbbVie President Michael Severino said the company had monitored this area for several years.

Seeking Diversity From Humira

A number of companies have launched Humira biosimilars in Europe and plan to launch those same copycats in the U.S. in 2023. That's problematic for AbbVie stock. Humira accounted for more than 43% of adjusted sales in 2020.

In the U.S., Humira grew 19.2%. But biosimilars chipped away at international sales, which fell 7.9% on a strict as-reported basis. Overall, first-quarter Humira sales rose 3.5%.

Total sales surged 37.6% in 2020, hitting $45.78 billion. But that includes the takeover of Botox-maker Allergan. On a comparable operational basis, sales inched up 3.3%.

On May 18, CEO Gonzalez faced questions from the Oversight and Reform Committee regarding the company's pricing and patent practices for Humira. Gonzalez acknowledged Humira costs more in the U.S. than it does in socialized health care systems abroad.

Rinvoq: The Next Humira?

AbbVie stock is susceptible to swings in opinion on Rinvoq. The company's bread-and-butter drug is TNF blocker Humira. Humira treats a number of inflammatory issues, including types of arthritis. But it's set to face biosimilar rivals in the U.S. in 2023. Rinvoq won't see copycat rivals for some time.

The FDA also noted the warning label requirement doesn't apply to JAK inhibitors from Bristol Myers Squibb (BMY) and Incyte (INCY) known as Inrebic and Jakafi, respectively. These drugs treat blood disorders and aren't being used in arthritis or for other inflammatory conditions.

ABBV — is it a buy?

• May 5: Is ABBV a buy? 

• 6 weeks later

AbbVie (ABBV) reported earnings on Fri 7 Feb 20 (b/o)

** chart before earnings **

 

 

 

** charts after earnings **

AbbVie beats by $0.02, reports revs in-line; guides FY20 EPS below consensus

Reports Q4 (Dec) earnings of $2.21 per share, excluding non-recurring items, $0.02 better than the S&P Capital IQ Consensus of $2.19; revenues rose 4.8% year/year to $8.7 bln vs the $8.68 bln S&P Capital IQ Consensus.

Worldwide net revenues were $8.704 billion, an increase of 4.8 percent on a reported basis, or 5.3 percent operationally. Excluding the unfavorable impact of international HUMIRA net revenues due to biosimilar competition, fourth-quarter net revenues grew 11.0 percent operationally. U.S. HUMIRA net revenues were $3.969 billion, an increase of 9.8 percent.

Internationally, HUMIRA net revenues were $948 million, a decrease of 27.3 percent on a reported basis, or 25.4 percent operationally, due to biosimilar competition. Global HUMIRA net revenues of $4.917 billion were flat on a reported basis and increased 0.5 percent operationally.

Co issues downside guidance for FY20, sees EPS of $9.61-9.71, excluding non-recurring items, vs. $9.78 S&P Capital IQ Consensus.

Earnings this week : Feb 3 - 7, 20 (wk 6)

Monday (Feb 3)

• Morning: ACM AMG ABG CTLT CHKP NSSC ON SASIA SYY
• Afternoon: ARE GOOG AFG BECN CBT EZPW FN HLIT HIG HP HXL HLI KMT KRC LEG MTSC NXPI PAHC PCH RBC SSD SXI VVV WWD

Tuesday (Feb 4)

• Morning: ATI AXE ARMK ATKR BDC TECH BP CNC CLX CMCO COP CSWI CTS CMI EXP ETN EMR ENTG AQUA IT HAE HLNE HUBB JHG LHX LANC LII LITE MCK MTG MSGN PBI PINC RL ROLL RCL SPG SIRI SNE TDG VSH GRA WDR WAT ZBH

Mon pm & Tue am (by vol) : https://finviz.com/screener.ashx?v=211&t=ARE,GOOG,AFG,BECN,CBT,EZPW,FN,HLIT,HIG,HP,HXL,HLI,KMT,KRC,LEG,MTSC,NXPI,PAHC,PCH,RBC,SSD,SXI,VVV,WWD,ATI,AXE,ARMK,ATKR,BDC,TECH,BP,CNC,CLX,CMCO,COP,CSWI,CTS,CMI,EXP,ETN,EMR,ENTG,AQUA,IT,HAE,HLNE,HUBB,JHG,LHX,LANC,LII,LITE,MCK,MTG,MSGN,PBI,PINC,RL,ROLL,RCL,SPG,SIRI,SNE,TDG,VSH,GRA,WDR,WAT,ZBH&ta=0&o=-volume

• Afternoon: EGHT ATGE AFL ALL DOX AINV APAM ATO BOOT CDK CERN CMG CB TCS CCK ESE ETH FISV F GTES GNW GILD GL THG HIW IPHI JKHY KLAC KN MANH MTCH MDU MCHP MODN MWA NBIX NEWR OI OLN PCTY CNXN PDM PAA PAGP PLT PWL PRU QGEN RRR RNR SCSC STX SNAP SWI TENB UNM USNA VIAV DIS YRCW ZAYO

Wednesday (Feb 5)

• Morning: ABB AME BMI BSX CPRI CG COTY DTE ENR FSV GM GPI HUM KFRC MHO MCFT MRK NS NVT BTU PAG PFGC SR SPOT SUM TMHC TKR UMC WD
• Afternoon: ADTN AOSL UHAL ANGI AVB ACLS CCMP CENT CDAY CINF CTSH COHR CUZ CSGS CUB DHT ECHO ELF ENS FEYE FLO FMC FORM FOXA GLUU GPRO GRUB HI ICHR IAC IRBT LCI LNC RAMP MTRX MXL MET MC MPWR NTGR NUAN ORLY OHI PAYC PTON QCOM  QNST RDN RYN RGLD SONO SAVE SU TBI TTMI TWLO TWO UGI WERN YUMC ZNGA

Thursday (Feb 6)

• Morning: ABMD WMS AGCO ALNY MT ARCH ARW BLL BCE BDX BGCP BV BCO BMY CAH CDW CI COR DNKN EIGI EL FCAU GLOP GLT HL  EAF HAIN ICE K KEM MAC MMS MPW MDP NRX NYT NGL NJR NOK ODFL PTEN PENN PM PBH PRLB REGN SPGI SNY SNA TPR TGI TWTR TSN USX VSTO WLTW WWE XYL YUM
• Afternoon: TWOU ATVI ASYS BIDU BHE BILL BKH BRKS CSL CCS COLM OFC DLX DXC EGP EGAN ENTA EHC EXPO FLT FSCT FTNT FTV FWRD G HUBG IQ LMAT LGND LFG.A MTW MTD MOBL MSI MYGN NOV NTUS UEPS NWSA NLOK OMCL ONTO PMT PINS POST PRO SGEN SIMO SKX SYNA TTWO TDC TSE UBER VRSN VVI VSAT VRTU VCRA WYNN ZEN

Friday (Feb 7) 

• Morning: ABBV AVTR CAE CCJ CBOE CNHI GOOS ROAD UFS FE GRC HMC

AbbVie (ABBV) reported earnings on Fri 1 Nov 2019 (b/o)

** charts after earnings **

 

 

 

AbbVie topped third-quarter estimates and announced a 10.3% increase to its dividend in 2020.

During the third quarter, AbbVie earned $2.33 per share, minus certain items. AbbVie earnings increased roughly 9% year over year and beat the forecast of analysts polled by Zacks Investment Research for $2.29 per share. Sales grew 3% to $8.48 billion, above estimates for $8.41 billion.

Chief Executive Richard Gonzalez credited the third-quarter strength to AbbVie's immunology unit and blood cancer treatments.

"We are also making excellent progress with several key strategic priorities, including the recent launch of our two new immunology therapies — Rinvoq and Skyrizi — both of which are off to an impressive start, as well as continued progress toward the completion of our planned acquisition of Allergan (AGN)," he said in a written statement.

AbbVie Earnings, Sales Top Estimates
Sales of AbbVie's most important product, Humira, were mixed. Humira, which treats forms of arthritis and psoriasis as well as Crohn's disease, is facing biosimilar competition in Europe. As a result, global Humira sales slipped 3.7% to $4.94 billion.

The pain was acute in international business. Humira sales plunged 33.5% to $1.05 billion. The Street expected this, however. In the U.S., Humira continued its momentum and sales increased 9.6% to $3.89 billion. Biosimilars will launch in the U.S. in 2023.

Revenue from blood cancer treatments jumped 38.3% to $1.48 billion. But sales from hepatitis C drugs tumbled 19% to $698 million. The market for hepatitis C treatments is maturing in the U.S. and Europe. There's also plenty of competition.

AbbVie Stock Rises On Dividend Boost
Based on the results, AbbVie raised its full-year earnings outlook to $8.90-$8.92, up 4 cents at the midpoint from its prior guidance. Analysts projected AbbVie earnings of $8.93. So, AbbVie's guidance was slightly short.

The pharmaceutical company also announced a plan to increase its quarterly cash dividend to $1.18 per share, up from $1.07 previously. This will begin with the dividend payable Feb. 14 to investors who own AbbVie stock as of Jan. 15.

Allergan (AGN) to be acquired by AbbVie (ABBV) for ~$188.24/sh

  

• The deal for the Botox maker comes as AbbVie eyes the end of patent protection for Humira, the world's best-selling drug.
• News of the possible deal comes a day after Bristol-Myers Squibb Co. agreed to divest one of Celgene Corp.’s most lucrative drugs in order to close their planned $74 billion combination. Japan’s Takeda Pharmaceutical Co. earlier this year completed a $62 billion takeover of Shire Plc.

AGN 

ABBV

 ** charts before announcement ** 

AGN 

 

ABBV

Allergan confirms deal to be acquired by AbbVie (ABBV) for approximately $63 bln, or ~$188.24 per share in cash & stock 

(Bloomberg) -- AbbVie Inc. agreed to buy rival drugmaker Allergan Plc for $63 billion in a deal combining the makers of arthritis drug Humira and wrinkle treatment Botox in a bid to kindle growth.

The takeover, at a value of $188.24 a share, is a 45% premium to Allergan’s closing price on Monday. Allergan rose 33 percent to $172 in pre-market trading in the U.S. early Tuesday.

AbbVie has been looking for ways to reinvigorate its pipeline of experimental drugs as Humira, the best-selling medicine in the world, faces competition from cheaper biosimilars. Allergan, which makes Botox, has been considering a split.

The deal comes as drugmakers seek greater scale as they seek innovative new treatments for cancer and other diseases, which require massive investments to develop but can yield greater payoffs. Meanwhile, pricing of many drugs has come under political pressure in the U.S.

News of the possible deal comes a day after Bristol-Myers Squibb Co. agreed to divest one of Celgene Corp.’s most lucrative drugs in order to close their planned $74 billion combination. Japan’s Takeda Pharmaceutical Co. earlier this year completed a $62 billion takeover of Shire Plc.

Allergan holders will receive 0.8660 AbbVie shares and $120.30 in cash for each share they hold. The combination will create a company with annual revenue of about $48 billion operating in 175 countries with an industry-leading pipeline of drugs in development, said Brent Saunders, Allergan's chief executive officer.

Under pressure from investors to restructure its business, Allergan said earlier in June that it would make a decision in the next two months on whether to split off some of its assets.

AbbVie (ABBV) reported earnings on Fri 26 Jan 2018 (b/o)

• Jan 25:  #97

** charts before earnings **

 

** charts after earnings **

AbbVie beats by $0.05, beats on revs; raises FY18 EPS guidance following tax reform

• Reports Q4 (Dec) earnings of $1.48 per share, excluding non-recurring items, $0.05 better than the Capital IQ Consensus of $1.43; revenues rose 13.9% year/year to $7.74 bln vs the $7.53 bln Capital IQ Consensus. 
• Global HUMIRA sales increased 14.0 percent on a reported basis, or 12.3 percent operationally, excluding a 1.7 percent favorable impact from foreign exchange. In the U.S., HUMIRA sales grew 15.1 percent in the quarter. Internationally, HUMIRA sales grew 6.5 percent, excluding a 5.2 percent favorable impact from foreign exchange.
• Co issues raised guidance for FY18, sees EPS of $7.33-7.43 from $6.37-6.57, excluding non-recurring items, vs. $6.66 Capital IQ Consensus Estimate.
• Co reflects the impact of U.S. tax reform and stronger operating performance. The midpoint of this guidance reflects year-over-year growth of 32 percent, more than half of which is driven by growth in the underlying business. Relative to the previously issued 2018 guidance provided in October 2017, this guidance includes an increase of $0.08 as a result of stronger operating dynamics. AbbVie's adjusted EPS guidance range reflects an effective tax rate of approximately 9 percent in 2018.
• In 2018, AbbVie will experience a one-time net tax benefit related to the timing of the phase in of provisions of the new legislation on certain subsidiaries. This benefit has been excluded from the adjusted EPS guidance, and included in the GAAP guidance range.
• Over the next five years, AbbVie plans to invest approximately $2.5 billion in capital projects in the U.S. and the company is currently evaluating additional expansion of its U.S. facilities. Also, in 2018, the company plans to make a one-time charitable contribution of approximately $350 million to select not-for-profit organizations based in the United States. 

Long trade : ABBV +23% (9/17)

a.  8/21: #1, 4-6, 22, 52, 58, 59, 97;   vol 4.5 M;  $70   →  +23%
b.  8/22:  vol. 3.5M   →  +20%

• One week later

AbbVie (ABBV) reported earnings on Fri 28 Oct 2016 (b/o)

** charts after earnings **

 

** the following day **

AbbVie beats by $0.01, misses on revs; narrows FY16 EPS near high end of range; raises dividend 12%  :

• Reports Q3 (Sep) earnings of $1.21 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus of $1.20; revenues rose 7.4% year/year to $6.39 bln vs the $6.55 bln Capital IQ Consensus. Worldwide adjusted net revenues increased 8.0%, excluding a 0.6 percent unfavorable impact from foreign exchange rate fluctuations.
• Global HUMIRA sales increased 11.3 percent on a reported basis to $4.06 bln (+17% to 2.65 bln in the US); +12.1% ex-FX. Strong global growth was driven by continued momentum across all three major market categories -- rheumatology, dermatology and gastroenterology.
• Third-quarter global IMBRUVICA net revenue was $501 million, with U.S. sales of $437 million and international profit sharing of $64 million for the quarter. Total company sales growth was also driven by strong operational growth from Creon and Duodopa.
• Co issues in-line guidance for FY16, narrows EPS to $4.80-4.82 from $4.73-4.83, excluding non-recurring items, vs. $4.82 Capital IQ Consensus Estimate.
• AbbVie is also announcing that its board of directors declared an increase in the co's quarterly cash dividend from $0.57 per share to $0.64 per share beginning with the dividend payable on February 15, 2017 to shareholders of record as of January 13, 2017. This reflects an increase of ~12%.