AbbVie Inc. to Acquire Cerevel Therapeutics for $8.7 Billion

by Warren Seah

AbbVie Inc. has announced an agreement to purchase Cerevel Therapeutics Holdings Inc. in a deal worth $8.7 billion. The acquisition will provide AbbVie with access to Cerevel’s robust neuroscience pipeline, which offers promising medications for psychiatric and neurological illnesses.

A Transformation in Neurological Care

AbbVie will acquire all shares of Cerevel for $45.00 per share in cash, amounting to a total valuation of $8.7 billion for the Cambridge-based neurosciences company.

Both companies’ boards have given their approval for the transaction, which is scheduled to be completed by mid-2024, subject to Cerevel shareholder approval and standard closing conditions.

Promising Medications in the Pipeline

Cerevel’s stock jumped 14% in extended trading upon news of the acquisition, while shares of AbbVie dropped 1.3%.

The company’s pipeline includes multiple medications in clinical-stage and preclinical stages, targeting diseases such as schizophrenia, Parkinson’s, and mood disorders.

AbbVie’s CEO, Richard A. Gonzalez, expressed excitement about the growth potential resulting from the combination of both companies’ neuroscience portfolios. He highlighted a few of Cerevel’s medications in late-stage trials, including emraclidine, a potential best-in-class, next-generation antipsychotic drug with potential applications in treating schizophrenia and Alzheimer’s-related psychosis.

Impacts on Earnings

The deal is expected to contribute to AbbVie’s adjusted per-share earnings by 2030, further solidifying their position within the market.

Overall, this strategic acquisition positions AbbVie for significant growth opportunities in the field of neuroscience for years to come.

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