Cerevel Therapeutics will be Acquired by AbbVie for $8.7 billion

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AbbVie has announced its plan to acquire neuroscience drugmaker Cerevel Therapeutics for approximately $8.7 billion. The deal involves AbbVie paying $45 per share for Cerevel, with the acquisition expected to be completed in the middle of 2024. Following the announcement, shares of Cerevel surged 16% after hours to nearly $43 per share, just below the purchase price, while AbbVie’s shares were down less than 1% in extended trading.

This acquisition is part of AbbVie’s strategy to enhance its drug pipeline, particularly in the face of generic competition for its top-selling treatments like Humira. The move comes on the heels of AbbVie’s recent agreement to acquire cancer drug developer Immunogen for nearly $10 billion.

Cerevel’s portfolio focuses on drugs for psychiatric and neurological disorders, addressing significant unmet needs in these therapeutic areas. One notable drug in Cerevel’s lineup is Emraclidine, an experimental treatment targeting schizophrenia and Alzheimer’s disease psychosis. The drug is currently undergoing a phase one study in elderly volunteers.

Richard Gonzalez, CEO and chairman of AbbVie, expressed optimism about the growth opportunities presented by the combined portfolio, stating that it represents a significant growth opportunity well into the next decade. AbbVie intends to leverage its commercial capabilities, international infrastructure, and expertise in regulation and clinical matters to deliver substantial shareholder value with the potential for multibillion-dollar sales across Cerevel’s assets. AbbVie will hold an investor conference call on Thursday at 8:00 a.m.

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