AbbVie Billion-Dollar Symphony: In a strategic maneuver, AbbVie Inc is on the brink of sealing an approximately $8 billion deal to acquire Cerevel Therapeutics Holdings Inc, a prominent developer of drugs targeting neurological conditions like Parkinson’s. This move follows closely on the heels of AbbVie’s substantial $10.1 billion cash deal to acquire cancer drug developer ImmunoGen Inc, showcasing the company’s robust commitment to investing in innovative medicines.
Sources familiar with the matter revealed that AbbVie is in advanced talks to pay around $45 per share for Cerevel, which boasts backing from private equity firm Bain Capital. If negotiations proceed successfully, an official announcement could be imminent, potentially within the week. The sources requested anonymity due to the confidential nature of the matter.
AbbVie and Cerevel have yet to respond to requests for comments on the developing situation.
The market responded swiftly to the news, with Cerevel shares surging 14% to $42.20 in afterhours trading in New York on Wednesday. This heightened investor interest reflects the anticipation surrounding AbbVie’s strategic moves and its positioning in the evolving landscape of pharmaceutical innovation. As AbbVie continues to make substantial bets on emerging medicines, the industry watches closely to gauge the impact of these transformative acquisitions on its market standing.
Also Read: AbbVie Expands Oncology Portfolio with $10.1 Billion ImmunoGen Acquisition
Our Reader’s Queries
What is the AbbVie controversy?
AbbVie, the manufacturer of Humira, is facing a lawsuit that references a U.S. House Committee on Oversight and Reform investigation. The investigation revealed that AbbVie charges around $77,000 for a year’s supply of Humira and has raised prices 27 times since the drug’s introduction. Shockingly, the total price increase amounts to a staggering 470% hike since 2003.
Why is Humira so expensive?
Generic versions of these drugs are not possible due to their unique formulation. Instead, biosimilars are produced by different manufacturers to compete with the original drug. Branded biologics, such as Humira, are usually protected by market exclusivity for a long time due to the complicated manufacturing process involved.
How much will generic Humira cost?
In July, Coherus BioSciences introduced Yusimry, its biosimilar version of Humira. The cost of Yusimry is $995 for a two-syringe carton, which is significantly lower than Humira’s $6,600 price tag for a nearly identical product.
Is Humira going generic?
Unlike traditional medications, biologics do not have generics. Instead, they have biosimilars, which are lower-cost alternatives that closely resemble the original medication. After two decades since the launch of Humira, the first nine biosimilars for this medication are expected to hit the U.S. market in 2023. This development is expected to provide patients with more affordable options for treating their conditions.