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.

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 ** charts before announcement ** 

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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.

-=Allergan Plc (AGN) reported earnings on Tue 30 Oct 2018 (b/o)

Oct 30 (Reuters) - Allergan Plc reported a 3 percent drop in quarterly revenue on Tuesday, as its faces increasing competition for its Alzheimer's treatment Namenda and other branded drugs.

The company posted net loss attributable to ordinary shareholders of $37.9 million, or 11 cents per share, in the third quarter ended Sept. 30, compared with loss of $4.03 billion, or $12.07 per share, a year ago, which included a one-time charge.

Revenue fell 3 percent to $3.91 billion.

Allergan beats by $0.21, reports revs in-line; raises FY18 EPS, revs guidance 

• Reports Q3 (Sep) earnings of $4.25 per share, excluding non-recurring items, $0.21 better than the S&P Capital IQ Consensus of $4.04; revenues fell 3.0% year/year to $3.91 bln vs the $3.89 bln S&P Capital IQ Consensus.
• Co raises guidance for FY18, sees EPS of $16.20-16.60 (Prior $16.00-16.50), excluding non-recurring items, vs. $16.38 S&P Capital IQ Consensus; sees FY18 revs of $15.55-15.7 bln (Prior $15.45-15.6 bln) vs. $15.63 bln S&P Capital IQ Consensus.

Earnings this week : Oct 29 - Nov 2, 18 (wk 44)

Headlining earnings this week will be Facebook (FB) on Tuesday and Apple (AAPL) on Thursday. Other notable earnings reports include General Electric (GE), Pfizer (PFE), and Coca-Cola (KO) on Tuesday, General Motors (GM) on Wednesday, Starbucks (SBUX) on Thursday, and Alibaba (BABA) on Friday.

Monday (Oct 29) 

• Morning: FDC YNDX BAH ON AMG CDAY RAMP WFT
• Afternoon:   AEIS AKAM ALSN AMED AMKR APPF APTI ARE AVB AXGN BLKB BRX CACC CBL CGNX CHE CHGG CLR CYH EFII EGHT EHC ELVT EPR ESV FCPT FET FTSI HIIQ HLIT HTLF INST KAI KBR KLAC KNL MDLZ MEDP NLS OFIX OGS OLN PI QGEN QTNA QTS RE RIG RMBS SANM SCI SSD TCO TKR TNET TREX TXRH UDR VNO VNOM VRNS WCN WING

Tuesday (Oct 30)

• Morning:  CHK + ACCO AER AET AGCO AGN AMRC AMT AN AOS ARII ARNC ARRY AWI BHGE BKI BP BPMC BTU CEQP CIGI CMCO CMI CNX CNXM CTSH CVLT EAT ECL ERJ ETN EXP FCAU FDP FIS FLIR FLOW FMS FUN GE GPN GWR HCA HEP HMC HUN HZO I INCY IPGP IPI KEM KO LL LYB MA MAS MSM NEO NTLA OXSQ PEG PFE SABR SHOO SNE SQNS SSTK ST TECH TPR TRS UAA VMC VNTR VSH WAB WCG WDR WELL WH WLH XYL
• Afternoon: ACGL AEGN AFG AINV AMGN APAM APC BAND BEAT BGS BHE BIDU BJRI BXP CAI CAKE CHRW CLVS CONE CRAY CW CXO DDD DENN EA EBAY EIX EVTC EXAS EXR FB FEYE FLT GNW H HABT HCLP HLF HURN HVT HY INN IQ IRTC LNTH MDR MGM MGRC MOBL MOD MRCY MX MXIM MXL NANO NBR NCR NGHC NTRI NUVA NXGN OI OKE ORBC OSPN PAYC PDM PSA QLYS QNST QUAD RBBN REXR RNR RPAI RRD RXN SF SFLY SIMO SKYW SPWR SSW TCS TENB TMUS TTMI TX ULTI VOYA VRSK WES WGP WIRE WLL WNC XLRN YUMC ZEN

Wednesday (Oct 31)

• Morning: ACOR ADP AEE AIT ANTM APO APTV ARCC AUO BAX BCOR BDC BG CAMT CBZ CDW CG CIM CLH CLX CRTO CVE DBD DIN EGL EL EPD ETR GM GNC GRMN HCP HES HFC HSC IART ICE ICPT IGT K KFRC LFUS LIVN MAXR NEWM OMI ORBK PBF PBFX RDC RDN S SAIA SC SITE SNY SPAR SPR STNG TAP TEL THR TMHC UTHR WD WEC WEX YUM    
• Afternoon: ADSW AGI AIG ALL AMGP AMN APA AR ATH AWK AXTI BLDP CACI CDE CF CLI CMP CNO CRY ENSG ESRT ESRX FARO FISV FIT FORM FOXF FRAC FRT HBM HCC HGV HPR JBT KIDS KRG KW LHCG LSI MAA MAC MASI MDU MOH MRC MTDR MUSA MYRG NE NEXA NFX NLY NPO NXPI O OMF OTEX PKI PPC PRAH QRVO RGLD RGR RPT RYN SOI SSNC STAY STMP SU THG TS TUSK TYL WHD WMB WPX WTI XPO ZNGA

Thursday (Nov 1)

• Morning: ECA   AAON AAWW ABMD AGIO ALE AMAG AMCX AME AMRN ARES AROC ARW AVP AYR BCE BID BLL BMCH BSIG CBRE CCOI CEIX CHD CHSP CI CJ CNQ CNSL CRAI CWT D DM DNOW DWDP EEX EGRX EPAM EXC EXLS FBM FLWS FND GEL GIL GLOG GLPI GNRC GOLF HBI HPP IBP ICL IDA IDCC IDXX IIVI INAP INGR INXN IPHS IT ITGR JHG LCII LITE LXRX MD MDC MGP MGPI MIXT MMP MPC MPW MSCI MSG MT NBL NI NSP NTCT NVMI NYT OSK PAH PBH PBI PENN PH PPL PRFT PWR RDS.A ROCK SEE SFM SHPG SN SNDR SNR SPOT SSYS STFC STOR TEVA TFX THS TPX TREE TRP TVPT UFS USCR USPH VECO VSAT VSTO W WCC WRLD WYND YRCW ZTS 
• Afternoon: AAPL ACIA ACLS AGI AIRG AIV ALEX AMH ANET AOSL APPN ARCB ATGE ATHN ATR ATRC ATSG BCOV BFAM BIO BL BLDR BNFT BRKR BVX CARB CATM CBPO CBS CC CCRN CECO CERS CHEF CPS CPSI CRC CRUS CTRL CWST CZR DEI DHT EBS ECOL ED EEP EGOV ELGX EOG EQIX ERII ES EXEL FATE FICO FLR FTAI FTNT GPRO GSAT GSBD GTE HR HST HTGC ICFI IMMR IPHI KAMN KHC KTWO KWR LADR LHO LNC LOCO LYV MDRX MELI MET MITK MSI MTX OLED P PACB PBA PBYI PCTY PE PEB PETX PK PMT PODD RMAX ROG RP RTEC RTRX RYI SBUX SEDG SEM SHAK SHLX SKT SM SPXC SRCL SRG STAG SYMC TDC TDOC TEX TNDM TRMB TRQ TSRO TTOO UNIT USX VIAV VICI WIFI WTW WU X Y 

Friday (Nov 2)

• Morning:  ABBV ABR ASIX AXL BABA BPL CBOE CCJ CNK COL CVX DOC DUK EAF ENB EXTR FTS HMSY HRC IMGN IMO ITT MDP MOG.A MSGN NPTN NWL RLGY ROLL RUTH STX TDS TGH TRTN TWI TYPE USM VG VIRT VST WLTW WPC XOM

-=Allergan (AGN) in talks to acquire Shire (SHPG), competing against Takeda

(Reuters) - Botox maker Allergan Plc is in talks to acquire Shire Plc, competing against Japan's Takeda Pharmaceutical Co Ltd for the London-listed drugmaker, two sources familiar with the matter said on Thursday.

It is not clear whether Allergan has submitted an offer, and there is no certainty of a bid, the sources said. Shire on Thursday said it had rejected an offer worth around $61 billion from Takeda.

The sources asked not to be identified because the matter is confidential. Allergan declined to comment, while Shire and Allergan did not immediately respond to requests for comment.

Allergan (AGN) reported earnings on Wed 2 Nov 2016 (b/o)

** chart 2 days before earnings **

** charts after earnings **

 

• A large pop the week following earnings:

Allergan misses by $0.23, misses on revs; lowers FY16 guidance; announces $10 bln ASR and initiates $0.70 quarterly dividend  :

• Reports Q3 (Sep) earnings of $3.32 per share, $0.23 worse than the Capital IQ Consensus of $3.55; revenues rose 4.4% year/year to $3.62 bln vs the $3.68 bln Capital IQ Consensus, were driven by strong performance from key brands and new product launches, offset by the loss of ASACOL HD exclusivity, lower revenues for NAMENDA XR and IR, a decline in non-promoted Established Brands revenues and unfavorable foreign exchange impact.
  • U.S. Specialized Therapeutics net revenues grew 12 percent driven by growth in Eye Care, Facial Aesthetics and Neuroscience & Urology. Eye Care franchise experienced strong results with RESTASIS net revenues in the third quarter of 2016 of $356.4 million, up 14 percent. BOTOX Cosmetic net revenues in the third quarter of 2016 were strong at $174.5 million, up 10 percent reflecting strong demand. BOTOX Therapeutic revenues in the third quarter of 2016 were $305.5 million, up 17 percent driven by strong demand across overactive bladder, chronic migraine and adult spasticity indications. LINZESS net revenues in the third quarter of 2016 were $164.4 million, up 40 percent driven primarily by continued OTC conversion.
• Co issues downside guidance for FY16, lowers EPS to $13.30-13.50 from $13.75-14.20, excluding non-recurring items, vs. $13.91 Capital IQ Consensus; lowers FY16 revs to $14.45-14.65 bln from $14.65-14.90 bln vs. $14.73 bln Capital IQ Consensus Estimate.
• Announces $10 bln accelerated share repurchase program; initiation of $0.70 quarterly dividend

Actavis (ACT) completed the acquisition of Allergan (AGN)

• Actavis (ACT), Allergan (AGN): On March 17, 2015, Actavis completed the acquisition of Allergan in a cash and equity transaction valued at approximately $70.5 billion. The combination created a $23 billion diversified global pharmaceutical company  
• In June 2015, Actavis officially changed its name to Allergan.