AbbVie offers Allergan escape from woes with $63 billion takeover

Expectations that AbbVie (NYSE: ABBV) would soon spend its significant cash pile have been answered by the US pharma company in a big way, with the announcement that it is to acquire Ireland-incorporated drugmaker Allergan (NYSE: AGN) for $63 million.

Shares in Allergan – which have plummeted by 60% during the company’s struggles over the last four years – increased by 32% to over $170 in pre-market trading on Tuesday.

During the four-year period, Allergan’s problems have included significant losses, management shake-ups, job cuts, investor activism, law suits and the failure of a proposed merger with Pfizer (NYSE: PFE).