Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Nyse  >  AbbVie    ABBV

ABBVIE

(ABBV)
  Report  
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsPress ReleasesOfficial PublicationsSector newsAnalyst Recommendations

Gilead invests $5 billion to deepen ties with biotech Galapagos

share with twitter share with LinkedIn share with facebook
share via e-mail
0
07/15/2019 | 04:37pm EST
A Gilead Sciences, Inc. logo is seen outside the company headquarters in Foster City, California

(Reuters) - U.S. antiviral drugmaker Gilead Sciences will invest $5.1 billion in a major expansion of its partnership with Belgo-Dutch biotech Galapagos, news that lifted Galapagos's shares more than 18% to an all-time high on Monday.

The move will bring Gilead's new chief executive Daniel O'Day growth opportunities in Galapagos's specialist areas including fibrosis and arthritis, and give Galapagos deep funds to develop and commercialize its drugs.

The two companies are going after inflammatory conditions, one of the most lucrative areas in the pharmaceuticals industry.

AbbVie Humira, used to treat rheumatoid arthritis and spondylitis, racked up nearly $20 billion in sales in 2018, while Amgen and Pfizer Enbrel still brings in $7 billion annually after 20 years on the market.

As part of the deal, Gilead will spend $1.1 billion to lift its Galapagos stake to 22% from 12.3%. The rest of the investment will be used to develop and commercialize its treatments for a 10-year period, the companies said.

"We chose to partner with Galapagos because of its pioneering target and drug discovery platform, proven scientific capabilities and outstanding team," O'Day said in a statement.

Galapagos, which has more than 500 scientists, is part of a thriving biotech scene centered around Belgium, fueled by tax breaks and other incentives, with companies spun out of universities now listed on the local stock exchange.

The deal follows a spate of biotech mergers last year including the acquisition of fellow Belgian biotech Ablynx by French drugmaker Sanofi for 3.9 billion euros ($4.4 billion) after a bidding war with Novo Nordisk.

Galapagos's most advanced drug in development is filgotinib, an experimental compound being advanced for rheumatoid arthritis and inflammatory bowel disease that Gilead intends to submit to the U.S. Food and Drug Administration this year.

The two companies first partnered four years ago to develop a drug targeting inflammatory diseases, with Gilead paying more than $2 billion for the development of filgotinib, as well as an equity stake in the European firm.

Gilead is paying a 10% premium to Friday's closing price for the increased stake in Galapagos, but has a 10-year standstill agreement preventing it from raising its stake above 29.9%.

"We see a logical rationale for the deal and believe that over time the closer relationship should help both companies," RBC analyst Brian Abrahams wrote in a note, reiterating his "buy" recommendation on Gilead stock.

Shares in Galapagos rose 18.8% to 152.20 euros.

Galapagos said it would also seek shareholder approval to allow Gilead to further increase its ownership to up to 29.9%.

The companies will share future development costs for filgotinib equally, replacing the 80-20 cost split provided by the original agreement, they said, with Galapagos gaining a broader role in the treatment's commercialization in Europe.

Gilead will get access to Galapagos's drug pipeline outside of Europe.

Gilead will nominate two people to Galapagos' board.

Barclays, Centerview Partners and Lazard acted as financial advisers to Gilead while Moelis & Co and Morgan Stanley advised Galapagos.

(Reporting by Ismail Shakil in Bengaluru; Additional reporting by Shubham Kalia, Phil Blenkinsop in Brussels and John Miller in Zurich; Writing by Georgina Prodhan in London; Editing by David Evans)

Stocks mentioned in the article
ChangeLast1st jan.
ABBVIE 0.91% 86.44 Delayed Quote.-6.24%
AMGEN 0.28% 221.31 Delayed Quote.13.68%
GALAPAGOS 0.12% 173.75 Delayed Quote.115.43%
GILEAD SCIENCES -0.50% 64.32 Delayed Quote.2.83%
NOVO NORDISK AS 0.51% 391 Delayed Quote.30.56%
PFIZER 0.11% 36.97 Delayed Quote.-15.30%
SANOFI -0.79% 83.19 Real-time Quote.10.81%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on ABBVIE
02:48aCREDIT MARKETS : AbbVie's $30 Billion Sale of Debt Draws Strong Demand -- WSJ
DJ
01:16aNEWS HIGHLIGHTS : Top Company News of the Day
DJ
11/12NEWS HIGHLIGHTS : Top Company News of the Day
DJ
11/12ABBVIE : Prices $30 Billion of Senior Unsecured Notes
PR
11/12NEWS HIGHLIGHTS : Top Company News of the Day
DJ
11/12NEWS HIGHLIGHTS : Top Company News of the Day
DJ
11/12ABBVIE : Sells $30 Billion of Bonds -- 2nd Update
DJ
11/12NEWS HIGHLIGHTS : Top Company News of the Day
DJ
11/12AbbVie Prepares Large Bond Sale -- Update
DJ
11/12ABBVIE : Prepares Large Bond Sale to Fund Allergan Purchase
DJ
More news
Financials (USD)
Sales 2019 33 291 M
EBIT 2019 15 773 M
Net income 2019 8 766 M
Debt 2019 29 098 M
Yield 2019 5,21%
P/E ratio 2019 13,1x
P/E ratio 2020 9,52x
EV / Sales2019 4,52x
EV / Sales2020 4,08x
Capitalization 121 B
Chart ABBVIE
Duration : Period :
AbbVie Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends ABBVIE
Short TermMid-TermLong Term
TrendsBullishBullishNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 12
Average target price 90,91  $
Last Close Price 82,08  $
Spread / Highest target 58,4%
Spread / Average Target 10,8%
Spread / Lowest Target -8,63%
EPS Revisions
Managers
NameTitle
Richard A. Gonzalez Chairman & Chief Executive Officer
Michael E. Severino Vice Chairman & President
Azita Saleki-Gerhardt Executive Vice President-Operations
Robert A. Michael Chief Financial Officer & Senior Vice President
Carlos Alban Vice Chairman & Chief Commercial Officer
Sector and Competitors
1st jan.Capitalization (M$)
ABBVIE-6.24%121 382
JOHNSON & JOHNSON2.27%344 670
ROCHE HOLDING AG22.47%254 722
MERCK AND COMPANY10.09%211 953
PFIZER-15.30%208 023
NOVARTIS19.53%198 320