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.
Valeant may have upped its Q3 revenue by 33% and beat analysts' bottom-line expectations--not to mention hiked its forecast for this year and next. But takeover target Allergan still isn't impressed. On the other hand, shareholders might be if Valeant hikes its hostile bid again, as its CEO now suggests.
The acquisition tightens BBK's ties to the team that helped to develop its patient and site engagement mobile app, My Clinical Study Buddy.
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.
ConvaTec, maker of wound, ostomy and skin care products is exploring a sale of itself for as much as $10 billion with investment banks Morgan Stanley and Goldman Sachs.
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.