AbbVie's Acquisition of Shire Could Save $8 Billion in Taxes
AbbVie's relocation to Ireland following Shire's acquisition could lower its annual tax expense by as much as 7% over the next 15 years.
According to GlobalData, a research and consulting firm, AbbVie’s recent $54 billion acquisition of Shire and subsequent relocation to Ireland will mean substantial tax savings for the US pharmaceutical giant.
Aparna Krishnan, MS, GlobalData’s analyst, and Joshua Owide, GlobalData’s director of Healthcare Industry Dynamics, said the rational for the deal consisted of a mix of portfolio diversification, operating cost synergies, and tax savings. Shire, which itself relocated to Ireland from the UK back in 2008, has since seen a notable drop in its tax expenses, with a five-year average effective tax rate (ETR) of 20.6% between 2008 and 2013, compared with 36.9% in 2008. By comparison, AbbVie’s ETR was 22.6% in 2013.
In terms of underlying assets, Shire will provide AbbVie with a portfolio that includes a number of niche drugs used in orphan diseases. According to GlobalData, the particular importance of Humira to AbbVie’s business should not be understated, as the drug accounted for 56.7% of the company’s top-line sales in 2013.
“Humira could face competition from adalimumab biosimilars as early as December 2016 in the US and April 2018 in other markets. However, even after assuming the entry of these treatments, Humira will remain AbbVie’s leading franchise far into the future, with a net present value of $37.6 billion and a free cash flow of over $60 billion through 2029,” adds Owide.
Source: GlobalData
The Future of Cleanroom Construction: How Hybrid Solutions are Changing the Game
May 14th 2025Imagine a world where cleanroom facilities—essential for pharmaceutical manufacturing, biotechnology, and high-tech industries—are built with unparalleled speed, precision, and efficiency. That world is here, thanks to the hybrid construction approach. By blending traditional stick-built methods with modular and prefabricated solutions, companies are overcoming the limitations of conventional construction while ensuring compliance with stringent industry regulations. In this interview, we explore how hybrid cleanroom construction is transforming the industry, offering faster project timelines, improved quality control, and significant cost advantages. Join us as we delve into this game-changing approach with industry experts who are leading the charge in revolutionizing cleanroom infrastructure.
Biophysical and Aggregate Characterization for the Development of Biologics
June 10th 2025This eBook explores how advanced particle analysis technologies are revolutionizing biologic drug development. It highlights the importance of accurately identifying and characterizing subvisible particles to ensure drug safety, stability, and regulatory compliance. Techniques like Backgrounded Membrane Imaging (BMI) and Fluorescence Membrane Microscopy (FMM) are often used for their capabilities in detecting protein aggregates and degraded excipients such as polysorbates. Case studies and experimental results demonstrate how these tools provide high-throughput, low-volume analysis that enhances decision-making in formulation screening and manufacturing.
Mastering Antibody-Drug Conjugates
December 19th 2024In this episode, we explore BIOVECTRA’s capabilities in antibody-drug conjugate (ADC) manufacturing, from complex conjugation chemistry to synthesis of highly potent payloads. We’ll also showcase how BIOVECTRA’s extensive experience in complex chemistries and specialized small molecule manufacturing gives them a unique perspective, strengthening their approach to ADC production and ensuring clients receive custom solutions across all project stages.
