AbbVie Slumps After $63 Billion Deal for Botox Maker Allergan

June 25, 2019, 10:53 AM UTCUpdated: June 25, 2019, 2:25 PM UTC

AbbVie Inc. has agreed to pay $63 billion for rival drugmaker Allergan Plc, the latest huge merger in a pharmaceutical sector rapidly being reshaped by deals.

Allergan will get $188.24 a share in cash and stock, according to a statement announcing the deal, a 45% premium to its closing price on June 24. AbbVie declined as much as 15% to $65.56, the biggest intraday drop since 2015. Allergan shares climbed as much as 30%.

The proposed takeover offers a solution to long-standing challenges at both companies. AbbVie gets a set of products big enough to diversify its revenue from Humira, ...

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