AbbVie plans to acquire Allergan in a cash and stock deal valued at $63 billion, one of the biggest mergers in the healthcare industry this year.
AbbVie will pay $188 a share in cash and stock, a 45 percent premium over Allergan's closing price on June 24.
If approved, the deal would give AbbVie access to the market for Botox and other beauty drugs.
The announcement of the transaction comes as AbbVie is bracing for the loss of patent protection for Humira, its best-selling drug for rheumatoid arthritis.
"The combination of AbbVie and Allergan increases our ability to continue to deliver on our mission to patients and shareholders. With our enhanced growth platform to fuel industry-leading growth, this strategy allows us to diversify AbbVie's business while sustaining our focus on innovative science and the advancement of our industry-leading pipeline well into the future," Richard Gonzalez, chairman and CEO of AbbVie, said in a news release.
This is the second big deal announced in the pharma industry this year. Bristol Myers Squibb announced in January its intent to buy Celgene for $74 billion.
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