Advertise With UsAdvertise on our extensive network of industry websites and newsletters.
Get the PBR newsletterSign up to our free email to get all the latest PBR
news.US-based biopharmaceutical firm AbbVie has entered into an agreement to acquire Pharmacyclics, including its cancer drug Imbruvica (ibrutinib), a Bruton's tyrosine kinase (BTK) inhibitor, designed to treat hematologic malignancies, for about $21bn.
Subscribe to our email newsletter
Imbruvica is approved for use in four indications to treat three different types of blood cancers including chronic lymphocytic leukemia, mantle cell lymphoma and Waldenstrom’s macroglobulinemia.
AbbVie chairman and chief executive officer Richard Gonzalez said: "The acquisition of Pharmacyclics is a strategically compelling opportunity. The addition of Pharmacyclics’ talented and innovative team will add enormous value to AbbVie.
"Its flagship product, Imbruvica, is not only complementary to AbbVie’s oncology pipeline, it has demonstrated strong clinical efficacy across a broad range of hematologic malignancies and raised the standard of care for patients."
The deal, which will include about 58% cash and 42% AbbVie common stock, will strengthen AbbVie’s clinical and commercial presence in oncology drugs portfolio.
As part of the deal, which was approved by the boards of directors of both companies, AbbVie will pay $261.25 per share comprised of a mix of cash and AbbVie equity.
The company said that subject to proration, Pharmacyclics stockholders can elect cash, AbbVie stock or a combination.
Initially, Imbruvica was approved by the US Food and Drug Administration (FDA) in 2013 and is the only therapy to have received three breakthrough therapy designations by the FDA.
Subject to customary closing conditions, including regulatory approvals, and the tender of a majority of outstanding shares of Pharmacyclics’ common stock, the tender is expected to be closed in mid-2015.
In addition, AbbVie will acquire all remaining shares of Pharmacyclics’ common stock that are not tendered in the tender offer through a second-step merger, which will be closed immediately following the tender offer and without a vote of Pharmacyclics’ stockholders.
The company intends to fund the transaction through a combination of existing cash, new debt and stock.
Image: Imbruvica is approved to treat chronic lymphocytic leukemia, mantle cell lymphoma and Waldenstrom’s macroglobulinemia. Photo: courtesy of Michelle Meiklejohn/ freedigitalphotos.net.