AbbVie Takes Over British Drug Firm ShireMd Noman Siddique (Author) Published Date : Jul 19, 2014 12:50 IST
After few attempts the US drug maker AbbVie finally bought their rival British drug maker Shire by a whopping 32 billion-pound as the US drug makers will also look to cut their tax after repositioning to UK.
But it was a tough ask for the US drug makers to convince the takeover from Shire who are famous of making rare and expensive medicines when AbbVie increased the price of the deal to 52.48 pounds per share alongside the share price of new Abbvie to 0.8960.
Abbvie is looking to minimize their tax by taking over Shire while another big reason of the mega deal was to cut lose their dependence over Humira the top grossing medicine as their exclusive rights with the medicine will end on 2016.
And for this reason the US drug makers were desperate to takeover Shire as AbbVie earns more than half of their revenue from Humira and for that they have given their final offer to the British drug makers.
Earlier another US company tried to take over a British firm by a $118 billion deal which was later rejected by the British company AztraZeneca plc.
On the other hand Shire finally ready to give the green signal to AbbVie after their increased price of take over which will end a long bargaining between the two firms.
The share price of Shire rose to 1.9% after the news spread out of AbbVie is taking over the British firm back in Friday.
And after the takeover AbbVie boss Richard Gonzalez informed that it will be a great platform to manufacture world class products where he also added that the blend of both AbbVie and Shire will be eye catching for the share holders.
AbbVie Takes Over British Drug Firm Shire