{"id":21118,"date":"2023-12-07T03:52:15","date_gmt":"2023-12-07T09:52:15","guid":{"rendered":"https:\/\/ustower.net\/?p=21118"},"modified":"2023-12-07T03:52:20","modified_gmt":"2023-12-07T09:52:20","slug":"abbvie-to-buy-drug-developer-cerevel-for-8-7-billion","status":"publish","type":"post","link":"https:\/\/ustower.net\/?p=21118","title":{"rendered":"AbbVie to buy drug developer Cerevel for $8.7 billion"},"content":{"rendered":"\n

Dec 6 (Reuters) – AbbVie (ABBV.N)<\/u><\/a> said on Wednesday it would buy Cerevel Therapeutics (CERE.O)<\/u><\/a>, a developer of drugs for neurological conditions, for about $8.7 billion in a bid to replace revenue as its arthritis drug Humira faces a raft of new competition.<\/p>\n\n\n\n

It marks the second large deal for AbbVie in the past week, coming days after it agreed to buy cancer drug developer ImmunoGen<\/u><\/a> (IMGN.O)<\/u><\/a> for $10.1 billion in cash, highlighting its appetite to place big bets on promising new medicines.<\/p>\n\n\n\n

It is paying $45 per share in cash for Cerevel, which is developing drugs for Alzheimer’s, Parkinson’s, psychosis, epilepsy, and panic disorder. Its experimental drug emraclidine is in midstage trials as a treatment for schizophrenia that will yield data the company hopes can be used to seek regulatory approval.<\/p>\n\n\n\n

The deal represents a 73% premium to Ceverel’s closing share price on Dec. 1, before rumors started circulating among traders about a potential sale of the company. The stock had risen 42% since Dec. 1, when Reuters reported on Wednesday afternoon that AbbVie was nearing a deal to buy the company for $45 per share.<\/p>\n\n\n\n

Trading in options on Cerevel had experienced an unusual surge<\/u><\/a> along with its stock price in the days before Wednesday’s deal announcement, with upside call options drawing hefty interest.<\/p>\n\n\n\n

Revenue from Humira, once the top-selling drug in the world, is expected to fall precipitously following market entry of over half a dozen biosimilar versions of the drugs this year in the U.S. It already faced competition in Europe.<\/p>\n\n\n\n

Humira sales, which topped out above $21 billion in 2022, are expected to be below $9 billion next year.<\/p>\n\n\n\n

Meanwhile, sales of AbbVie’s blockbuster leukemia drug Imbruvica dropped 20% in the third quarter due to competition from BeiGene’s (6160.HK)<\/u><\/a> Brukinsa and AstraZeneca’s (AZN.L)<\/u><\/a> Calquence.<\/p>\n\n\n\n

Imbruvica is also one of the 10 drugs that will be subject to the first-ever price negotiations by U.S. Medicare health plans, with new prices expected to come into effect in 2026.<\/p>\n\n\n\n

Cambridge, Massachusetts-based Cerevel was started in 2018 when Pfizer (PFE.N)<\/u><\/a> carved out its division developing drugs for the central nervous system into a standalone company backed by a $350 million investment from Bain.<\/p>\n\n\n\n

Cerevel was listed on the New York stock market in 2020. Bain and Pfizer hold stakes of about 36% and 15%, respectively.<\/p>\n\n\n\n

Cerevel shares were up 15.5%, while AbbVie shares were flat in extended trading.<\/p>\n\n\n\n

Reuters<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Dec 6 (Reuters) – AbbVie (ABBV.N) said on Wednesday it would buy Cerevel Therapeutics (CERE.O), a developer of drugs for neurological conditions, for about $8.7 billion in a bid to replace revenue as its arthritis drug Humira faces a raft of new competition. It marks the second large deal for AbbVie in the past week, coming days after […]<\/p>\n","protected":false},"author":5,"featured_media":21119,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1155],"tags":[24829,6819,24830,24828,1183],"class_list":["post-21118","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-abbvie","tag-acquisition","tag-cerevel","tag-developers","tag-drug"],"_links":{"self":[{"href":"https:\/\/ustower.net\/index.php?rest_route=\/wp\/v2\/posts\/21118","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ustower.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ustower.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ustower.net\/index.php?rest_route=\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/ustower.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=21118"}],"version-history":[{"count":1,"href":"https:\/\/ustower.net\/index.php?rest_route=\/wp\/v2\/posts\/21118\/revisions"}],"predecessor-version":[{"id":21120,"href":"https:\/\/ustower.net\/index.php?rest_route=\/wp\/v2\/posts\/21118\/revisions\/21120"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ustower.net\/index.php?rest_route=\/wp\/v2\/media\/21119"}],"wp:attachment":[{"href":"https:\/\/ustower.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=21118"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ustower.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=21118"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ustower.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=21118"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}