AbbVie was Allergan's only suitor in $63B megatakeover: proxy


2019-08-15 00:03:39 FiercePharma


AbbVie’s $63 billion, megatakeover agreement for Allergan took most of the industry by surprise when the two drugmakers dropped the news in late June. Turns out it’s easier to keep a corporate courtship under wraps when only two parties are involved. The deal that turned into this year’s biggest M&A blockbuster began with a phone call between AbbVie CEO Richard Gonzalez and Allergan head Brent Saunders in March and ended three months later—with no other suitors—in a marriage. According to an Allergan proxy filing outlining the deal’s background, the two companies’ flirtation began March 13 when Gonzalez rang Saunders for a discussion on “a variety of potential strategic opportunities” Allergan might be considering. At the time, Allergan was facing a dwindling stock price and investor agitation to split the company up to boost profits. During the call, Gonzalez dropped a not-so-subtle hint he was interested, telling the Allergan CEO that AbbVie was open to a “strategic relationship” between the two. RELATED: AbbVie's $63B Allergan buyout offer depends on Botox growth. But will it last? Saunders was intrigued: The two met in person April 22, and Gonzalez—playing it coy—said AbbVie might be open to acquiring Allergan but did not make a proposal. Those hints were enough for Saunders, who told the Allergan board of directors May 1 about his discussions with Gonzalez. Over the course of the next month—with check-ins to the Allergan board’s M&A committee—Gonzalez and Saunders furtively rang one another, discussing the framework of a deal without a whisper of possible price, the proxy said. May 28, Saunders and Gonzalez once again met in person and had the conversation they had been waiting for. Gonzalez, moving quickly, said AbbVie was considering an acquisition price of $174 per Allergan share, a premium of 28% to 32% of the company’s share price. Saunders said he would take the proposition back to his board but admitted they would “unlikely to be interested in a transaction at that price.” Gonzalez, keeping the door ajar, said he wanted to keep the channel open. RELATED: Analysts rip into AbbVie, Allergan's $63B deal, citing culture clash, strategy concerns and more After the two companies reached a mutual confidentiality agreement May 30, management teams met the following week to divulge each company’s structure, business strategy, pipeline and more. Meanwhile, Saunders and Gonzalez agreed to meet once more to discuss price. On June 7, Gonzalez said AbbVie was upping its initial offer to $184 per share. Saunders, playing hardball, asked for a higher price to take back to his board. The following day, Gonzalez reiterated his $184 per share proposal but hinted that AbbVie’s board could go as high as $186. When the Allergan board met June 11, advisers from JPMorgan attempted to throw some cold water on the pairing, asking whether the board had considered another option beyond an acquisition and whether there were any other offers on the table. According to the proxy, AbbVie was the only suitor Allergan contacted. After the meeting, on June 12, Gonzalez gave his final offer: $188 per share, a 45% premium, contingent on the AbbVie board’s approval June 19. Gonzalez also offered two seats on the joint company’s board to Saunders and another director. RELATED: AbbVie, nearing the end of Humira's historic run, scoops up a struggling Allergan for $63B June 16, Saunders got the approval he wanted. The board unanimously agreed to move ahead on due diligence and credit applications for the deal, and AbbVie’s board followed suit between June 17 and June 20. Finally, after months of work, AbbVie and Allergan shook on it June 25, when the two companies executed a transaction agreement formalizing the deal. In their unanimous recommendation for the deal, Allergan’s board “concluded that the uncertainties, risks and potentially negative factors relevant to the transaction were outweighed by the potential benefits that it expected Allergan and its shareholders would achieve as a result of the transaction.” RELATED: Say goodbye to AbbVie's ever-growing Humira sales: The biosim decline has officially begun  The deal was especially welcome for investors looking for a “welcome exit” from Allergan, RBC Capital Markets analyst Randall Stanicky said, noting that the drugmaker’s share price had dwindled in recent years. For AbbVie, the deal represents a chance to grow after its megablockbuster fell over the patent cliff in Europe this year and faces a similar decline in the U.S. in 2023. Gonzalez is expected to helm the joint company after the merger.
艾伯维(AbbVie)斥资630亿美元收购艾尔建(Allergan)的交易让该行业的大部分人感到意外,因为两家制药商在6月底放弃了这一消息。结果表明,当只有两方参与的情况下,让公司的求爱行为变得更容易。 这宗交易成为今年最大的并购重磅炸弹,最初是艾伯维(AbbVie)首席执行官理查德•冈萨雷斯( Richard Gonzalez )和艾尔建( Allergan )首席执行官布伦特•桑德斯( Brent Saunders )在3月份打来电话,三个月后,双方还没有其他求婚者。 根据一份概述交易背景的 Allergan 代理文件,这两家公司的调情始于3月13日,当时冈萨雷斯( Gonzalez )就艾尔建(Allergan)可能考虑的“各种潜在战略机遇”与桑德斯展开了讨论。当时,艾尔建(Allergan)正面临股价不断下跌的局面,投资者也在为提高利润而分拆该公司。 在通话期间,冈萨雷斯放弃了一个他感兴趣的不那么微妙的暗示,告诉艾尔建(Allergan)首席执行官艾伯维(AbbVie)对双方的“战略关系”持开放态度。 相关:艾伯维(AbbVie)以630亿美元收购艾尔建(Allergan)取决于肉毒杆菌毒素的增长。但它会持续下去吗? 桑德斯对此很感兴趣:两人于4月22日亲自会面,冈萨雷斯扮演的很好,他说艾伯维(AbbVie)可能愿意收购艾尔建(Allergan),但没有提出收购建议。这些暗示对于桑德斯来说已经足够了,他在5月1日告诉艾尔建(Allergan)董事会他与冈萨雷斯的讨论。 这位代理人表示,在接下来的一个月里,冈萨雷斯和桑德斯通过与艾尔建(Allergan)董事会并购委员会的谈判,在不透露可能的价格的情况下,秘密讨论了交易框架。 5月28日,桑德斯和冈萨雷斯再次亲自见面,并进行了他们一直在等待的谈话。冈萨雷斯迅速表示,艾伯维(AbbVie)正在考虑以每股174美元的收购价格收购艾尔建(Allergan)的股份,溢价28%至32%。桑德斯表示,他将把这个提议带回董事会,但承认他们“不太可能以这个价格对交易感兴趣”。冈萨雷斯说,他想保持通道畅通。 相关报道:分析人士以文化冲突、战略担忧等为理由,抨击艾尔建(Allergan)以630亿美元收购艾伯维(AbbVie) 在两家公司于5月30日达成相互保密协议后,管理团队于下周召开会议,对每家公司的结构、经营策略、管道等进行了披露。与此同时,桑德斯和冈萨雷斯同意再次开会讨论价格问题。 6月7日,冈萨雷斯表示,艾伯维(AbbVie)将把最初的出价提高到每股184美元。桑德斯,打硬球,要求更高的价格回到他的董事会。第二天,冈萨雷斯重申了每股184美元的提议,但暗示艾伯维(AbbVie)的董事会可能高达186美元。 当艾尔建(Allergan)董事会于6月11日开会时,摩根大通( JPMorgan )的顾问试图对这两家公司的交易给出一些冷水,询问董事会是否考虑了收购以外的另一种选择,以及是否还有其他报价。据代理称,艾伯维(AbbVie)是唯一联系过的追求者艾尔建(Allergan)。 会议结束后,6月12日,冈萨雷斯给出了他的最终报价:每股188美元,溢价45%,取决于艾伯维(AbbVie)董事会6月19日的批准。冈萨雷斯还向桑德斯和另一位董事提供了合资公司董事会的两个席位。 相关报道:阿贝,即将结束 Humira 的历史长跑,以630亿美元收购了挣扎中的艾尔建(Allergan) 6月16日,桑德斯得到了他想要的批准。董事会一致同意推进该交易的尽职调查和信贷申请,而艾伯维(AbbVie)董事会在6月17日至6月20日期间也采取了类似行动。最后,经过几个月的努力,艾伯维(AbbVie)和艾尔建(Allergan)在6月25日达成了交易协议,正式敲定了交易。 Allergan 董事会在其对该交易的一致建议中“得出结论,与该交易相关的不确定性、风险和潜在负面因素,被预期艾尔建(Allergan)及其股东将因该交易而获得的潜在利益所抵消。” 相关:告别艾伯维(AbbVie)不断增长的 Humira 销售:生物产量的下降已经正式开始 加拿大皇家银行资本市场( RBC Capital Markets )分析师兰德尔•斯坦基( Randall Stanicky )表示,对于寻求从艾尔建(Allergan)“欢迎退出”的投资者而言,这笔交易尤其受欢迎。他指出,这家制药商的股价近年来有所下降。 对于艾伯维(AbbVie)而言,这笔交易代表着一个增长的机会,因为该公司今年在欧洲专利悬崖上大跌,2023年美国也面临类似的下滑。预计冈萨雷斯将在合并后执掌这家合资公司。