Cerevel Therapeutics rises on $8.7 bln buyout deal by AbbVie

Cerevel Therapeutics Holdings

07/12/2023 10:04

** Shares of drug developer Cerevel Therapeutics  CERE.O 
rise 15% to $42.49 premarket
    ** AbbVie  ABBV.N  said on Wednesday it would buy CERE for
~$8.7 bln in a bid to replace revenue as its arthritis drug
Humira faces competition from cheaper rivals
    ** ABBV will pay $45 per share in cash for CERE, which
represents a 73% premium to Cerevel's closing price on Dec. 1
    ** CERE is developing drugs for Alzheimer's disease,
Parkinson's disease, psychosis, epilepsy and panic disorder
    ** Massachusetts-based Cerevel was started in 2018 when
Pfizer  PFE.N  carved out its unit developing drugs for the
central nervous system into a standalone company backed by a
$350 mln investment from Bain
    ** Up to last close, Cerevel stock up ~17% YTD

 (Reporting by Mariam Sunny in Bengaluru)
 ((Mariam.ESunny@thomsonreuters.com;))