Pharmaceutical company AbbVie is continuing its expansion efforts by acquiring Cerevel Therapeutics in a deal worth $8.7 billion. The all-cash transaction will bolster AbbVie’s neuroscience division and allow the company to make the most of its strong balance sheet.
Cerevel Therapeutics specializes in developing treatments for schizophrenia, Parkinson’s disease, and mood disorders. The news of the acquisition caused a 16% spike in Cerevel’s shares during premarket trading on Thursday.
This strategic move by AbbVie is a response to the recent loss of patent protection for its popular drug, Humira, which is used in the treatment of rheumatoid arthritis. In an effort to maintain growth and offset any potential decline in sales, the company is actively seeking to diversify its product portfolio.
This acquisition follows closely on the heels of another major deal announced by AbbVie. On November 30th, the company revealed its $10 billion takeover of ImmunoGen, a prominent developer of cancer treatments. These acquisitions demonstrate AbbVie’s commitment to expanding its presence in the pharmaceutical industry.
While AbbVie has experienced a 36% decline in sales during the third quarter, the company remains optimistic about its future prospects. Despite the challenges it has faced this year, including a 10% reduction in stock value, AbbVie has raised its dividend and provided positive guidance for the rest of the year.
The pharmaceutical sector as a whole has encountered difficulties due to weakened demand for COVID-19 treatments. Major players like Johnson & Johnson, Pfizer, and Astrazeneca have all experienced declines in their stock values throughout the year.
It’s clear that AbbVie is taking proactive steps to navigate through these challenging times and position themselves for long-term success. By adding Cerevel Therapeutics to its portfolio, AbbVie aims to strengthen its foothold in the market and deliver innovative solutions to patients in need.
