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AbbVie to Acquire Pharmacyclics: What it Means For Mutual Fund Investors (ABBV, PCYC)

Abbvie company logo
Before the opening bell on Thursday, drug company AbbVie (ABBV) announced that it has agreed to acquire Pharmacyclics (PCYC). Here’s what this deal means for mutual fund investors.

Inside the Deal

AbbVie will acquire Pharmacyclics, a biotechnology company that specializes in cancer drugs for about $21 billion. This deal, which is expected to close in the middle of 2015, will be composed of 58% cash, and 42% of ABBV’s common stock. In the deal, ABBV will acquire Pharmacyclics for $261.25 per share.

This is the first deal that the company has made since its terminated deal to acquire Ireland-based Shire.

Shares of ABBV dropped 2.5% on the news, while PCYC sales surged over 10%.

AbbVie’s Drug Pipeline

AbbVie, which spun off from Abbott (ABT) in 2012, currently has over 40 drugs in its pipeline. This deal will give ABBV exposure to the blood-cancer market and allow it to add even more drugs to its product line.

Despite the opportunity, shares of ABBV are down today, as many analysts see PCYC’s Imbruvica drug as unable to meet ambitious sales estimates.

Mutual Funds to Watch

Investors interested in ABBV may consider a mutual fund as an alternative to owning the individual stock. The funds below currently hold the largest stakes in ABBV.

The Bottom Line

The funds listed above allow investors to gain exposure to ABBV while remaining diversified. Investors interested in ABBV may also be interested in Abbott (ABT) or Pfizer (PFE).

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Abbvie company logo

AbbVie to Acquire Pharmacyclics: What it Means For Mutual Fund Investors (ABBV, PCYC)

Before the opening bell on Thursday, drug company AbbVie (ABBV) announced that it has agreed to acquire Pharmacyclics (PCYC). Here’s what this deal means for mutual fund investors.

Inside the Deal

AbbVie will acquire Pharmacyclics, a biotechnology company that specializes in cancer drugs for about $21 billion. This deal, which is expected to close in the middle of 2015, will be composed of 58% cash, and 42% of ABBV’s common stock. In the deal, ABBV will acquire Pharmacyclics for $261.25 per share.

This is the first deal that the company has made since its terminated deal to acquire Ireland-based Shire.

Shares of ABBV dropped 2.5% on the news, while PCYC sales surged over 10%.

AbbVie’s Drug Pipeline

AbbVie, which spun off from Abbott (ABT) in 2012, currently has over 40 drugs in its pipeline. This deal will give ABBV exposure to the blood-cancer market and allow it to add even more drugs to its product line.

Despite the opportunity, shares of ABBV are down today, as many analysts see PCYC’s Imbruvica drug as unable to meet ambitious sales estimates.

Mutual Funds to Watch

Investors interested in ABBV may consider a mutual fund as an alternative to owning the individual stock. The funds below currently hold the largest stakes in ABBV.

The Bottom Line

The funds listed above allow investors to gain exposure to ABBV while remaining diversified. Investors interested in ABBV may also be interested in Abbott (ABT) or Pfizer (PFE).

If you’ve enjoyed this article, sign up for the free MutualFunds.com newsletter; we’ll send you similar content weekly.


Sign up for Advisor Access

Receive email updates about best performers, news, CE accredited webcasts and more.

Popular Articles

Download our free report

Find out why $30 trillon is invested in mutual funds.

Why 30 trillion is invested in mutual funds book

Why 30 trillion is invested in mutual funds book

Download our free report

Find out why $30 trillon is invested in mutual funds.

Why 30 trillion is invested in mutual funds book

Download our free report

Find out why $30 trillon is invested in mutual funds.


Read Next