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An indication stands outdoors a Abbvie facility in Cambridge, Massachusetts, Might 20, 2021.
Brian Snyder | Reuters
AbbVie on Wednesday mentioned it’ll purchase neuroscience drugmaker Cerevel Therapeutics for roughly $8.7 billion.
Beneath the phrases of the deal, AbbVie can pay $45 per share for Cerevel. AbbVie mentioned it expects to finish the acquisition in the midst of 2024.
Shares of Cerevel jumped 16% after the shut Wednesday to just about $43 per share, just under the acquisition worth. Shares of Abbvie have been down lower than 1% in prolonged buying and selling.
The deal is AbbVie’s newest try to broaden its drug pipeline as its top-selling therapies, equivalent to Humira, face generic competitors. Simply final week, AbbVie agreed to purchase most cancers drug developer Immunogen for almost $10 billion.
Cerevel will particularly beef up AbbVie’s portfolio for psychiatric and neurological problems “the place vital unmet wants stay,” in keeping with a launch from AbbVie.
Cerevel will convey over medication equivalent to Emraclidine, an experimental remedy for each schizophrenia and Alzheimer’s illness psychosis, together with signs like hallucinations and delusion. That drug is presently in a part one examine in aged volunteers.
“Our current neuroscience portfolio and our mixed pipeline with Cerevel represents a major progress alternative effectively into the subsequent decade,” mentioned Richard Gonzalez, CEO and chairman of AbbVie, in an announcement. “AbbVie will leverage its deep industrial capabilities, worldwide infrastructure, and regulatory and medical experience to ship substantial shareholder worth with multibillion-dollar gross sales potential throughout Cerevel’s portfolio of belongings.”
AbbVie mentioned it’ll maintain an investor convention name concerning the deal on Thursday at 8:00 a.m. ET.
