AbbVie Buys a Neuroscience Company for $8.7 Billion in Cash
On Wednesday night, $AbbVie(ABBV)$ said that it has agreed to buy $Cerevel Therapeutics Holdings, Inc.(CERE)$ for $8.7 billion, a neuroscience company located in Cambridge, Massachusetts, saying the "robust" neuroscience R&D pipeline of company will add drugs changing the standard of care for mental and neurological disorders.
According to the terms of the agreement, AbbVie will acquire all of Cerevel's shares for $45 per share in cash, valuing the company at $8.7 billion. Additionally, AbbVie said the boards of directors of both companies have approved the deal. Subject to Cerevel shareholder approval and other customary closing conditions, the transaction is expected to close in mid-2024.
Shares of Cerevel rose 14% after hours following the news, and trading was subsequently suspended; while AbbVie's shares fell 1.3%.
Cerevel has a wide range of clinical and pre-clinical stage drugs for conditions such as schizophrenia, Parkinson's disease and mood disorders. Richard A. Gonzalez, AbbVie's chief executive officer, said in a statement : "Our existing neuroscience portfolio coupled with Cerevel's research and development pipeline represents significant growth opportunities over the next decade."
The companies highlighted some of Cerevel's late-stage clinical trials, including what they called a "potentially best-in-class, next-generation" antipsychotic medicine, emraclidine, which may be effective in treating schizophrenia as well as Alzheimer's disease-related psychosis.
AbbVie said the deal is expected to increase the company's adjusted earnings per share through 2030.
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