Shares of AbbVie Inc.
and Allergan plc
were both up about 1% in trading on Wednesday after AbbVie announced new plans for the combined company once the pending $63 billion acquisition of Allergan closes. It’s the first time the company has shared leadership plans since confirming that Richard Gonzalez would stay in his role as CEO of AbbVie. Allergan CEO Brent Saunders will be on the board of directors but does not have a role in the combined company, according to an AbbVie spokeswoman. One Allergan executive, Carrie Strom, will join the executive leadership team of the combined company; the other eight members are AbbVie executives. Strom will lead the newly created Allergan Aesthetics, a separate Irvine, Calif.-based business for Botox and the other Allergan medical aesthetics treatments. It will also conduct its own research and development. Allergan’s other therapies, including Botox for indications other than aesthetics, the antipsychotic Vraylar and irritable bowel syndrome drug Linzess, will be folded into AbbVie, which is based in North Chicago. The deal is expected to close this quarter. Over the last year, Allergan’s stock is up 31%, and AbbVie’s stock is down 1%. The S&P 500
has gained 27% over the last 52 weeks.
View more information: https://www.marketwatch.com/story/abbvie-to-separate-botox-in-new-aesthetics-unit-brent-saunders-wont-have-role-2020-01-08