With Allergan acquisition, Abbvie will depend less on Humira

In a deal of approximately $63 billion announced on June 25, 2019, Abbvie (ABBV) bought Allergan (AGN) with the strategic ambition to diversify and expand its revenue base. After several agreements reached in recent years with competitors like Amgen (AMGN) in September 2017 with a view to controlling the marketing of Humira (and similar drugs) whose exclusivity ended in Europe last year, Abbvie wants to structurally reduce its dependence on the best-selling medicine in the world. Indeed, Humira accounted for more than 65% of Abbvie’s revenues in 2018 ($18.4 billion) and is expected to drop to less than 40% by early 2020 once the acquisition of Allergan approved.