Days after AbbVie recommended that shareholders vote against its proposed $55 billion deal for Shire, the company officially cut the cord and terminated its pending merger. And while Shire has big plans to succeed solo, AbbVie could face a few stumbling blocks without the Dublin-based company by its side.
Shire and AbbVie have formally called it quits on a planned $55 billion merger, leaving each company to get by on the merits of its own pipeline and talk up the benefits of life without the other.
While its merger with AbbVie is looking dead, Shire is likely in line for a $1.6 billion breakup fee, cash that could fund a major M&A push. And with renowned dealmakers in its executive ranks, Shire may not be lonely for long.
Breaking up is hard to do, and can be expensive. AbbVie is getting into record territory with the $1.635 billion breakup fee it will have to pay Shire for canceling their $55 billion deal.
Now that AbbVie has said it wants to dump Shire, we could soon have two companies back on the market--and both could prove popular as the dust settles. In fact, as Bloomberg reports, AbbVie could make a decent second choice to AstraZeneca if Pfizer so chooses.
Another one bites the dust in the Big Pharma megamerger craze. Weeks after the U.S. Treasury Department laid out new tax rules to limit the stream of corporate inversions, AbbVie called it quits on its proposed $55 billion takeover of Dublin-based Shire.
After first vowing to see the merger through despite new tax rules designed to make a merger much more difficult, AbbVie's board publicly hesitated yesterday and then early this morning recommended against going through with the tie-up, essentially killing the deal.
Shire, which believed only a day ago that it would soon be bought out by AbbVie in a $54 billion deal prompted by tax advantages, is not going to just roll over and play dead now that its pursuer is getting cold feet. It insists the deal should go through.
AbbVie to Shire: Maybe that idea about merging regardless of what the Obama administration thinks wasn't so hot after all.
Alarmed payers are gearing up for another hepatitis C battle. Now that Gilead Sciences' new two-in-one infection fighter Harvoni is approved--and with a $94,500 price--it's worth looking at some strategies payers have used with other hep C drugs, including Sovaldi, the single-agent sibling to Harvoni.