HALISTER: AbbVie To Buy Stemcentrx in ~$5.8b Deal; Plans $4b ASR

AbbVie To Buy Stemcentrx in ~$5.8b Deal; Plans $4b ASR

(Bloomberg) -- AbbVie will acquire closely-held Stemcentrx for its late stage lung cancer assets in $5.8b cash/stock deal including ~$2.0b in cash, rest stock.
  • Stemcentrx investors eligible for up to $4b in cash milestones
  • Deal seen closing in 2Q; ABBV plans $4b accelerated shr buyback program upon completion
  • Deal seen 20c-shr dilutive to ABBV ongoing EPS in 2016, ABBV lowers 2016 EPS view to reflect deal; accretion starting in 2020
  • ABBV gets rovalpituzumab tesirine (rova-T), a biomarker- specific antibody drug conjugate targeting cancer stem cell protein DLL3, in deal; says rova-T “a multi-billion dollar peak revenue opportunity,” w/ potential commercialization in 2018
    • Sees L-T data on Rova-T, including overall survival presented at ASCO
    • Registrational trials for third-line small cell lung cancer are expected to complete enrollment by year end
Alert: HALISTER
Source: BFW (Bloomberg First Word)

Tickers
ABBV US (AbbVie Inc)
1389767D US (Stemcentrx Inc)

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