FTC Clears AbbVie’s $63-Billion Acquisition of Allergan
AbbVie and Allergan have satisfied all required antitrust clearances for the acquisition.
The US Federal Trade Commission has accepted the proposed acquisition by AbbVie of Allergan, based on the companies having satisfied all required antitrust clearances needed for the transaction, AbbVie announced in a May 5, 2020 press release. The $63-billion acquisition was announced in June 2019.
Among the required closing conditions, Allergan has agreed to divest brazikumab, an investigational monoclonal antibody (mAb) that inhibits interleukin (IL)-23 inhibitor, currently in development for autoimmune diseases, including Crohn's Disease and ulcerative colitis. The mAb will be divested to AstraZeneca.
Allergan has also agreed to divest Zenpep (pancrelipase), a prescription treatment for exocrine pancreatic insufficiency due to cystic fibrosis and other conditions. Nestle will acquire Zenpep as well as Viokace (pancrelipase), another pancreatic enzyme preparation, as part of the same transaction.
In addition, AbbVie and Allergan have amended their transaction agreement such that only one Allergan director will join the AbbVie board following close. Allergan's current chairman and CEO, Brent Saunders, has elected not to join the AbbVie board to provide more flexibility to pursue other opportunities in the sector.
The closing of the acquisition remains subject to other customary closing conditions set forth in the transaction agreement and Irish High Court approval. A hearing was scheduled for May 6, 2020.
Source: AbbVie
