Cerevel Therapeutics (NASDAQ:CERE) stock is on the rise Thursday after the clinical-stage biopharmaceutical company reached an acquisition deal with AbbVie (NYSE:ABBV).
That deal has AbbVie agreeing to acquire Cerevel Therapeutics for $8.7 billion. This will see it pay $45 per share in cash for CERE stock. That represents a nearly 22% premium over the stock’s closing price on Wednesday.
AbbVie chairman and CEO Richard Gonzalez said the following about the deal to acquire Cerevel Therapeutics:
“Our existing neuroscience portfolio and our combined pipeline with Cerevel represents a significant growth opportunity well into the next decade. AbbVie will leverage its deep commercial capabilities, international infrastructure, and regulatory and clinical expertise to deliver substantial shareholder value with multibillion-dollar sales potential across Cerevel’s portfolio of assets.”
CERE Stock Deal Details
AbbVie notes that it’s expecting the deal for Cerevel Therapeutics to close in mid-2024. The pharmaceutical company also mentions that the acquisition will start being accretive to its adjusted diluted earnings per share in 2030.
The deal already has the support of both companies’ Board of Directors. Now, it just needs approval from the shareholders of Cerevel Therapeutics and regulators.
CERE stock is up 11.6% as of Thursday morning, with some 6 million shares traded. For the record, its daily average trading volume is closer to 1.2 million shares.
Investors looking for more of the most recent stock market news are in luck!
We have all of the hottest market happenings worth reading about on Thursday! A few examples include why shares of Fisker (NYSE:FSR), Rivian (NASDAQ:RIVN) and ZyVersa Therapeutics (NASDAQ:ZVSA) stock are in the news today. All of that info is available at the links below!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
