AbbVie and Allergan have waited for nearly a year for their much-discussed merger to pass muster. But finally, after pushback from consumer groups and tight scrutiny from regulators, the Federal Trade Commission has granted the megadeal a green light.
The partners face just one final hurdle to consummating their $63 billion deal, which will create the fourth-largest drugmaker in the world when it officially closes.
As part of the agreement, AbbVie and Allergan will offload Allergan’s late-stage gastrointestinal candidate brazikumab to AstraZeneca as well as two pancreatic replacement enzymes, Zenpep and Viokace, to Nestlé.
In addition, only one Allergan board member will be allowed to take a seat on AbbVie’s board of directors. Allergan Chairman and CEO Brent Saunders has chosen to step aside, forgoing the board seat “to pursue other opportunities in the sector,” AbbVie said in a release.
The merger is pending final closing, and an Irish High Court hearing on the acquisition is scheduled for Wednesday.
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The FTC green light comes a little more than two months after the European Union gave its own blessing to the deal. In early March, the drugmakers closed a deal with AstraZeneca to offload brazikumab and end the EU’s antitrust review.
Allergan had previously agreed in January to sell off brazikumab, Zenpep and Viokace.
Two weeks after clearing the EU’s review, AbbVie and Allergan reached a “consent decree” with the FTC in March to divest the three drugs, hoping to avert additional antitrust scrutiny.
Editor’s note: This story will be updated.
