Shire to receive $1.635 billion break fee from AbbVie

The board of Ireland-headquartered drugmaker Shire (LSE: SHP) has said there is now no realistic prospect of AbbVie (NYSE: ABBV) completing its takeover offer after it terminated the deal last week.

Shire has agreed with AbbVie to terminate the Cooperation Agreement, which includes a break fee of approximately $1.635 billion payable by AbbVie to Shire by the end of business today.

Susan Kilsby, Shire chairman, said: “Shire has an exceptional track record of delivering value and growth. This growth profile has been accelerated by our new management team executing a clear and focused strategy. Importantly, we have maintained this momentum since July and made material progress across our business. Whilst we are disappointed that the offer will not now complete, we continue to enjoy excellent prospects as we execute our plan to double Shire’s product sales to $10 billion by 2020.”