Top analyst finds a silver lining in AbbVie’s $63B Allergan buyout — but there’s a catch
After getting beat up on all sides from market observers who don’t much care for the latest mega-deal to arrive in biopharma, at least one prominent analyst now is starting to like what he sees in the numbers for AbbVie/Allergan.
But it’s going to take some encouragement if AbbVie execs want it to last.
AbbVie’s market cap declined $20 billion on Tuesday as the stock took a 17% hit during the day. And SVB Leerink’s Geoffrey Porges can see a distinct outline of an upside after reviewing the fundamentals of the deal.
Key to this bullish position is Porges’ belief that AbbVie can slice more than $2 billion in “synergies” post-merger while crediting the pharma giant with an industry-leading commercial team that can handle these new products — primarily Botox and medical aesthetics — even better than Allergan.
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