FTC requests AbbVie, Allergan for more information on $63 billion deal

Reuters September 28, 2019

(Reuters) – The U.S. Federal Trade Commission (FTC) has requested for more information from AbbVie Inc (ABBV N) and botox maker Allergan Plc (AGN۔N) on their $63 billion deal, the companies said on Friday.

FILE PHOTO: The Allergan logo is seen in this photo illustration November 23, 2015. REUTERS/Thomas White
FILE PHOTO: A screen displays the share price for pharmaceutical maker AbbVie on the floor of the New York Stock Exchange July 18, 2014. REUTERS/Brendan McDermid

AbbVie and Allergan said they still expect the deal to close in early 2020, and were cooperating with the antitrust regulator.

 AbbVie Inc. 74.85
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The scrutiny into the deal, which combines two of the world’s biggest pharmaceutical companies, follows a request by a dozen advocacy groups and unions to the FTC to block the purchase.

In a letter seen by Reuters, the groups noted that the deal would create the fourth largest pharmaceutical company at a time when rising drug prices have become a hot political issue.

AbbVie said the FTC’s second request for information was expected.

The deal to buy Allergan, announced in June, came as Abbvie faced pressure to diversify its portfolio, and as its blockbuster drug Humira, the world’s best selling medicine, faces competition from cheaper versions.

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