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AbbVie Inc. said late Wednesday it has agreed to buy Cerevel Therapeutics Holdings Inc. for $8.7 billion, saying that Cerevel’s “robust” neuroscience pipeline adds medications that may transform standards of care in psychiatric and neurological illnesses.
Under the terms of the deal, AbbVie will acquire all shares of Cerevel for $45.00 a share in cash, which values the Cambridge, Mass., neurosciences company at $8.7 billion.
The boards of both companies have approved the transaction, which is expected to close in mid-2024 subject to Cerevel shareholder approval and other usual closing conditions, AbbVie said.
Cerevel’s stock
CERE,
jumped 14% in extended trading after the news before trading was halted, while shares of AbbVie
ABBV,
dropped 1.3%.
Cerevel has multiple medications in clinical-stage and preclinical stages for diseases including schizophrenia and Parkinson’s, as well as for mood disorders.
“Our existing neuroscience portfolio and our combined pipeline with Cerevel represents a significant growth opportunity well into the next decade,” AbbVie Chief Executive Richard A. Gonzalez said in a statement.
The companies highlighted a few of Cerevel’s medications on late-stage trials, including emraclidine, which they called “a potential best-in-class, next-generation” antipsychotic drug that may be effective in treating schizophrenia and Alzheimer’s-related psychosis.
AbbVie said that the deal is expected to add to its adjusted per-share earnings by 2030.
