Abbvie Inc. · NYSE:ABBV
Abbvie — Merger or Acquisition (March 2015)
20 slides from Abbvie's merger presentation, Mar 5, 2015
Slide 1: AbbVie's Acquisition of Pharmacyclics
ABBVIE’S ACQUISITION OF PHARMACYCLICS March 5, 2015
Slide 2: Disclaimer and Forward-Looking Statement
Disclaimer and Forward‐Looking Statement This presentation and its contents are confidential and may not be reproduced, redistributed, published or passed on to any other person, directly or indirectly, in whole or in part, for any purpose. This presentation is neither an offer to purchase nor a sol
Slide 3: Strategically Compelling Acquisition
Strategically Compelling Acquisition Well‐positioned for leadership in the large and rapidly growing oncology market Companies well‐aligned with complimentary strengths and assets Significantly accelerates clinical and commercial presence in oncology Combines the promising novel mechanisms for treat
Slide 4: Strong Strategic Fit
Strong Strategic Fit Complementary strategic capabilities: • Pharmacyclics – Strong expertise in kinase biology and oncology discovery – Organizational expertise/capabilities in oncology development – Established strong commercial channel in hematological oncology • AbbVie – Strong pre‐clinical disc
Slide 5: Financially Compelling Opportunity
Financially Compelling Opportunity Provides financially attractive profile, with accretion beginning in 2017, accelerating to more than $0.60 per share in 2019, and ramping significantly thereafter Exceeds our cost of capital hurdle rate by 2019, significantly exceeds it thereafter Purchase price of
Slide 6: Financial Details
Financial Details • AbbVie to acquire Pharmacyclics for $261.25 per share in cash and stock ― Represents 39% premium to the Pharmacyclics closing price on February 24, 2015 ― Implies transaction value of approximately $20.2BN net of cash acquired • Pharmacyclics shareholders have option to elect 100
Slide 7: Strong Strategic Fit Drives Significant Value
Strong Strategic Fit Drives Significant Value Key Benefits Accelerates AbbVie’s leadership position in oncology Provides access to large and rapidly growing on‐market asset with potential to achieve >$7BN peak‐year AbbVie sales Accretive to EPS growth beyond 2016; ramping to >$0.60 per s
Slide 8: Hematologic Oncology Represents Significant Opportunity
Hematologic Oncology Represents Significant Opportunity B‐Cell Malignancies: ~126,000 new Cases 2014 Global malignant hematology market In the U.S. In 2014** ~$24BN1 Hodgkin’s Chronic Lymphocytic 9,190 Leukemia (CLL) (7%) $1.7B Multiple Myeloma Lymphoma (MM) MM 24,050 $6.1B $7.1B (19%) NHL 70,800 (5
Slide 9: B-Cell Malignancies – Background
B‐Cell Malignancies – Background • B‐cell malignancies are a broad and complex group of cancers – Arise from various developmental stages of the B lymphocyte, the cell type responsible for humoral (antibody‐mediated) immunity • Occur in several forms ― Leukemia: Primarily affecting the bone marrow a
Slide 10: IMBRUVICA Overview – Mechanism of Action
IMBRUVICA Overview – Mechanism of Action BCR Signaling CD79a/b CD19 PIP2 PIP3 Lyn Lyn PI3K BTK PLC2 DAG PKC IKK Syk Syk BLINK IP3 Ca++ ERK NFB • IMBRUVICA is a novel and differentiated BTK‐inhibitor • Bruton’s tyrosine kinase (BTK) is an essential element Nucleus of the B‐cell receptor (BCR) sig
Slide 11: IMBRUVICA Overview – Current Indications
IMBRUVICA Overview – Current Indications • IMBRUVICA (ibrutinib) ‐ potential backbone therapy in B‐Cell Malignancies – First‐in‐class with demonstrated progression free survival and overall survival advantages over Rituxan – Targeting a $10BN+ market with significant growth potential • Four FDA/EMA
Slide 12: IMBRUVICA Overview – Potential Expansion of Indications
IMBRUVICA Overview – Potential Expansion of Indications • Extensive ongoing clinical program – 58 clinical studies ongoing with 13 in Phase III – 5,100 patients have been enrolled in IMBRUVICA (ibrutinib) clinical trials – 800 investigators in 35 countries • Targeting one‐to‐two new indications per
Slide 13: Combined Hematologic Oncology Portfolio Overview
Combined Hematologic Oncology Portfolio Overview IMBRUVICA duvelisib venetoclax Mechanism of Action BTK Inhibition PI3K Inhibition BCL‐2 Inhibition Indications Approved for use in refractory CLL, Being explored for use in refractory, Being explored for use in CLL and WM, second‐line Mantle Cell indo
Slide 14: Select Pipeline Assets
Robust Pipeline Spans Attractive Specialty Categories Phase I Phase II Phase III Registration Veliparib: Ovarian Cancer Humira: Hidradenitis Suppurativa ABT‐399: Solid Tumors ABT‐199: CLL (Relapsed/Refractory) ABT‐199: AML ABT‐165: Solid Tumors ABT‐199: iNHL ABT‐199: CLL (Front‐line; unfit) 2‐DAA Ja
Slide 15: AbbVie Mid- to Late-Stage Program Highlights: Other Oncology
AbbVie Mid‐to Late‐Stage Program Highlights: Other Oncology Compound Details Veliparib • PARP‐inhibitor, enhances the effectiveness of common DNA damaging cancer therapies Solid Tumors • Four Phase III studies currently underway • Planning to begin Phase III development for ovarian cancer in 2015 El
Slide 16: AbbVie Mid- to Late-Stage Program Highlights: Immunology
AbbVie Mid‐to Late‐Stage Program Highlights: Immunology Compound Details GLPG0634 • Selective JAK‐1 inhibitor being evaluated as potential treatment for RA and Crohn’s disease Rheumatoid Arthritis • Phase IIB RA studies on track to read out this year Crohn’s Disease ABT‐494 • Internally developed se
Slide 17: AbbVie Mid- to Late-Stage Program Highlights: Other Programs
AbbVie Mid‐to Late‐Stage Program Highlights: Other Programs Compound Details Zinbryta (daclizumab) • Humanized antibody specific for IL2 receptor in development for relapsing remitting MS Multiple Sclerosis • Strong pivotal trial results showed patients treated with Zinbryta had a statistically sign
Slide 18: 2015: Significant Late-Stage Pipeline Activity
2015: Significant Late‐Stage Pipeline Activity Key Data Readouts • ABT‐199: Data from R/R CLL 17p del study • Next‐gen HCV: Phase IIB SVR data • Elotuzumab: Phase III data in R/R multiple myeloma • Duvelisib: Phase IIB data in iNHL • GLPG0634: Phase IIB data in RA • ALV‐003: Phase IIB data in celiac
Slide 19: Strong Return of Cash to Shareholders
Strong Return of Cash to Shareholders Significant and growing cash flow Recently increased quarterly dividend by 4%; following ~17% increase in late 2014 Since AbbVie inception in 2013, dividend has been increased nearly 28% Share buyback program in place; to be executed over next several years Stro
Slide 20: OQooDvie
OQooDvie