What the $63 Billion AbbVie Allergan Deal Says About the Drug Industry
AbbVie will buy Allergan for $63 billion. This merger deal isn’t just a story about industry consolidation – it suggests innovation among big pharma companies is limited and they are desperate to protect their revenue streams.
Can AbbVie reverse dropping sales of its blockbuster medication Humira? This drug is used for psoriasis and arthritis. Besides, it got about $20 billion revenues just in 2018.
In addition, Raymond James analyst Elliot Wilbur in a research note writes the following: “AbbVie has near-term growth but faces a cliff, or more like a canyon, problem with the loss of Humira to [generic] biosimilars in the U.S. beginning mid-2023 while Allergan… has struggled to generate growth but doesn’t face any key near-term exclusivity loss.”
Indeed, “Big Pharma” have followed the path of deal-making and patent protection recently because the ROI on their R&D has not been as good as they expected.
Furthermore, the AbbVie Allergan acquisition might become a $63 billion case study illustrating the measures that big pharma is taking while hindering better medicine from reaching patients with arthritis.
Here we write our editorial note to this article from Fortune. This company knows that stem cell therapy is more affordable and more effective than their medication Humira. In fact, stem cell treatment is fully approved by the FDA for patients to get this treatment for arthritis. 30 million Americans suffering from arthritis will be able to overcome this condition eventually.