AbbVie acquiring Allergan in $63B deal — 7 insights

AbbVie is acquiring competitor Allergan for $63 billion in a deal that will reverberate through the pharmacy industry.

What you should know:

1. North Chicago drugmaker AbbVie agreed to acquire Dublin, Ireland-based Allergan for $78.45 per share in a cash and stock transaction.

2. AbbVie will incorporate Allergan's drug portfolio into its offerings and could have market-leading positions in immunology, hematologic oncology, medical aesthetics, neuroscience, women's health, eye care and virology as a result.

3. The deal could strengthen AbbVie's growth platform, which is expected to grow at a high single-digit growth rate to more than $30 billion in 2020 if the deal closes.

4. The deal could also boost AbbVie's cash flow and affect its adjusted earnings per share, boosting them by 10 percent over the first full year if the transaction closes.

5. AbbVie would retain its corporate structure after the deal closes, adding two Allergan representatives to its board, including Allergan Chairman and CEO Brent Saunders. AbbVie would own 83 percent of Allergan, with Allergan shareholders owning the remaining 17 percent.

6. The deal is subject to shareholder and regulatory approvals.

7. AbbVie CEO and Chairman Richard Gonzalez called the deal a "transformational transaction" for both companies.

"The combination of AbbVie and Allergan increases our ability to continue to deliver on our mission to patients and shareholders," he said. "With our enhanced growth platform to fuel industry-leading growth, this strategy allows us to diversify AbbVie's business while sustaining our focus on innovative science and the advancement of our industry-leading pipeline well into the future."

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