Abbvie to purchase Pharmacyclics for $21bn

Overnight, US pharmaceuticals outfit Abbvie launched a multi-billion dollar take-over of rival Pharmacyclics to expand its footprint in the fast growing market for blood cancer treatments.

The former company, based in North Chicago, highlighted that the purchase will allow it to add the blockbuster treatment Imbruvica to its portfolio of treatments.

Imbruvica is a so-called BTK inhibitor which has already been approved for multiple uses against three types of blood cancer - chronic lymphocytic leukemia, mantle cell lymphoma and Waldenstrom's macroglobulinemia.

The potential for the drug to be used in alternate application is the subject of 50 on-going clinical programs.

The transaction, which is to be carried out via a combination of cash and shares, has an approximate value of $21bn or $261.25 for each share of Pharmacyclics.

As of 14:53 shares in Abbvie were trading down by 3.53% to $58.06, stock in Pharmacyclics received a 10.63% boost to $254.97.