As one of the world's leading pharmaceutical companies, AbbVie has approximately 50,000 employees focused on discovering and delivering transformative medicines and products. Recently, AbbVie acquired Allergan, a move that was made possible by the massive amount of cash generated by Humira and the corporate tax review under the Trump administration. One of the main assets of Allergan is Botox, an injection of a purified form of botulinum toxin that is used to paralyze muscles, smooth expression lines and wrinkles on the forehead and around the eyes. It is also approved to treat chronic migraines, overactive bladder, and other medical uses.
When used as a cosmetic treatment, patients must pay for Botox out of pocket, which helps to cushion it from the price pressure that health insurers and government health agencies have imposed on prescription drugs. AbbVie CEO Richard Gonzalez said he doesn't expect a biosimilar version of Botox “for a long, long time, if ever”. The acquisition of Allergan has caused shares of other specialty drug manufacturers and potential targets such as Mylan NV, Bausch Health Co Inc and Teva Pharmaceutical Industries Ltd to increase. The combination of AbbVie and Allergan will be based in the AbbVie home in North Chicago.
Since then, Allergan has struggled to find new growth. Its shares have lost about half of their value and shareholders have pressured Saunders to separate or sell the company. Activist investor David Tepper also ran a campaign urging Allergan to hire an independent president. The transaction is expected to add 10% to AbbVie's adjusted earnings per share for the first full year after closing, the companies said.
Morgan Stanley and PJT Partners were financial advisors to AbbVie, while Kirkland & Ellis provided legal advice. JPMorgan Chase & Co was Allergan's financial advisor, and its legal advisors were Wachtell, Lipton, Rosen & Katz and Arthur Cox. One of the rare side effects of Botox is a visible enlargement in the treated area that may develop two to five months after treatment, will not resolve on its own, and may require surgical intervention for correction. It is important to tell your doctor if you have any medical conditions such as recent surgery, a pre-existing hernia or any known sensitivities or allergies before receiving Botox.
In addition to Botox, Allergan manufactures several other pharmaceuticals including Juvederm (injectable filler), CoolSculpting (cryolipolysis), Alphagan (brimonidine), Vraylar (cariprazine HCI), Linzess (linaclotide) and Ubrelvy (ubrogepant).
