You can't predict the future by just looking at the past.
AbbVie (NYSE: ABBV) announced in June that it plans to acquire Allergan (NYSE: AGN) . Many immediately panned the deal as a $ 63 billion mistake. Others were more optimistic about the transaction. These views were mainly based on the price tag of the acquisition and the well-known advantages and disadvantages of Allergan.
However, there are many unknowns associated with buying a biopharmaceutical company. Evaluation of a purchase involves digging into the target company's pipeline to try to determine how much value it can bring. It requires considerable expertise.
This is not the first acquisition for AbbVie. Can the company's previous agreements provide some insight into how adept AbbVie's team has been to identify the real value of potential acquisition targets? I think so. With this in mind, I developed a report card of AbbVie's acquisition to identify the possible implications for the Allergan agreement.
AbbVie's report card
AbbVie was spun from Abbott Labs