By Cara Lombardo, Jonathan D. Rockoff and Dana Cimilluca
AbbVie Inc. is nearing a deal to buy Allergan PLC for more than $60 billion, according to people familiar with the matter, as the two big drugmakers bet a combination will deliver new sources of growth they have struggled to find on their own.
The takeover, worth $188 a share in cash and stock, is expected to be announced later Tuesday, the people said. The price, mainly to be paid in cash, represents a 45% premium over Allergan's closing share price Monday of $129.57. If not for a surge in the shares in recent days on expectations for a breakup of the company, the premium would be even bigger.
Buying Dublin-based Allergan would deliver a dominant position in the $8 billion-plus market for Botox and other beauty drugs, as well as a number of popular eye treatments, as AbbVie braces for the end of patent protection for the world's top-selling drug, Humira.
The companies' portfolios have some overlap in treatments for brain, women's-health, stomach and other disorders, though the combination would take AbbVie into the new realm of frown-line smoothing, eyelash lengthening and double-chin removal.
Allergan's nearly $16 billion in yearly revenue would also give AbbVie another source of cash to hunt for a new generation of products.