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AbbVie has announced its acquisition of Cerevel Therapeutics Holdings for $8.7 billion, emphasizing the transformative potential of Cerevel's robust neuroscience pipeline in psychiatric and neurological illnesses. The deal involves AbbVie acquiring all shares of Cerevel at $45.00 per share in cash, valuing the Cambridge-based neurosciences company at $8.7 billion. The transaction, approved by both boards, is anticipated to conclude in mid-2024, subject to Cerevel shareholder approval and standard closing conditions.
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In response to the news, Cerevel's stock surged 14% in extended trading before trading was halted, while AbbVie's shares experienced a 1.3% decline. Cerevel, with medications in clinical and preclinical stages targeting diseases such as schizophrenia, Parkinson’s, and mood disorders, contributes significantly to AbbVie's neuroscience portfolio. AbbVie's CEO, Richard A. Gonzalez, expressed optimism about the growth potential of their combined pipeline with Cerevel, foreseeing substantial opportunities well into the next decade.
Why it matters
The acquisition aligns with AbbVie's strategic vision, highlighting some of Cerevel's late-stage trial medications, including emraclidine, identified as a potential best-in-class, next-generation antipsychotic drug with effectiveness in treating schizophrenia and Alzheimer’s-related psychosis. AbbVie anticipates the deal to positively impact its adjusted per-share earnings by 2030, emphasizing the long-term value and growth prospects associated with this strategic move.
