Unlike Bristol-Myers Squibb's similar-sized deal for Celgene earlier this year, which focused on creating a industry-leading oncology franchise, the two companies' products and pipelines aren't obvious complements.Want to share a company announcement with your peers?But the initial pages of that story were written in a way AbbVie probably didn't like: the pharma's stock dropped more than 15% Tuesday, erasing nearly $20 billion in market value in what was the company's worst trading day since spinning out from Abbott six years ago.And while the two companies have different focuses, analysts still expect some level of divestment will be required. "This is yet another transaction driven by diversification, scale and low borrowing costs, rather than portfolio or top line synergies," SVB Leerink's Geoffrey Porges wrote, adding he expects the new AbbVie to be seen as "an attractive financial asset, but not as an industry innovator. If you click "I disagree" below, we will be unable to provide you with access to the Information and you will be redirected to AbbVie’s homepage. Piper Jaffray's Raymond wrote that claim "made some investors cringe a little bit" given AbbVie's track record on such deals.Committing to high dividends and steady debt payments further ties AbbVie to its Humira's success, though. Divan noted that there's an argument to be made that AbbVie is now "even more dependent on having Humira generate the near-term cash flows" required to keep the company's financial position solid.Moody's senior vice president Michael Levesque, meanwhile, called further acquisition capacity "rather limited" in the near term if AbbVie does fulfill its deleveraging plan of quickly paying down its debt. Yet for Moody's Levesque, integration is a key risk for this deal. This notice may be amended or updated by AbbVie from time to time and it should be read carefully in full each time you wish to view the website. THE INFORMATION IS BEING MADE AVAILABLE IN GOOD FAITH AND FOR INFORMATION PURPOSES ONLY, AND ITS AVAILABILITY IS SUBJECT TO THE TERMS AND CONDITIONS SET OUT BELOW. Recommended Offer for Allergan plc (“Allergan”) by AbbVie Inc. (“AbbVie”) (the “Acquisition”) by means of a scheme of arrangement under Irish law (the “Scheme”).
BASIS OF ACCESS TO INFORMATION Please read this notice carefully before clicking "I agree" or "I disagree" below. Yet with Tuesday's stock price slide in mind, here's why those may not play out as rosily as expected.AbbVie plans to invest heavily in Botox to keep driving its growth, Gonzalez said. "Two turkeys don't make an eagle," as he put it.Topics covered: Pharma, biotech, FDA, gene therapy, clinical trials, drug pricing and much more.Gonzalez, though, brushed off the idea of biosimilar Botox. No offer of securities shall be made in the United States absent registration under the U.S. Securities Act of 1933, as amended, or pursuant to an exemption from, or in a transaction not subject to, such registration requirements. In addition, the content of the website, and its accessibility by certain persons, may be amended at any time in whole or in part at the sole discretion of AbbVie. THE INFORMATION IS NOT DIRECTED AT, AND IS NOT INTENDED TO BE ACCESSIBLE BY, PERSONS RESIDENT IN ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF THAT JURISDICTION.