Both AbbVie and Allergan faced growing shareholder pressure for more aggressive approaches to answer long-term questions on each company's future.
Yet AbbVie's planned $63 billion buyout of Allergan came as a surprise to some on Wall Street, and brings further change to an industry still digesting Bristol-Myers' deal for Celgene.
For AbbVie, shareholders have grown increasingly focused on what will drive the company forward beyond Humira (adalimumab), which accounts for more than 60% of its revenues and faces entry of low-cost copycats in the U.S. in 2023.
Per deal terms, Allergan shareholders will receive 0.866 shares in AbbVie along with $120.30 in cash for each share in Allergan. After closing, AbbVie investors would own 83% of the combined company.