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AbbVie Seeks To Offload Allergan's Women's Health Unit: Reuters

With blockbuster Humira’s U.S.

· 03/16/2021 12:13

With blockbuster Humira’s U.S. patent coming closer to expiry, AbbVie Inc’s (NYSE: ABBV) is reportedly in talks to sell the $5 billion women’s health portfolio acquired from Allergan to pay off debt and focus on new areas.

  • According to Reuters, AbbVie is working with Morgan Stanley to auction off the portfolio, including the Lo Loestrin Fe birth control pill.
  • The potential sale has reportedly attracted interest from CVC Capital Partners.
  • Humira’s U.S. patent protection is expiring in 2023, and AbbVie needs to pay down some $143.7 billion of debt.
  • In 2018, then-Allergan CEO Brent Saunders laid out plans to sell the company’s women’s health and infectious disease units but then decided to hold on.
  • The Allergan deal boosted AbbVie’s kitty with the Botox franchise and $16 billion in annual revenue to work ahead of losing U.S. patent protection for Humira.
  • Women’s health portfolio generates a 12-month EBITDA of $500 million and could be valued ten times.
  • According to sources, CVC could use the AbbVie division to bulk up its portfolio company Theramex.
  • Price Action: ABBV shares are trading 0.2% higher at $110.48 in market trading hours on the last check Tuesday.