NEW YORK (TheStreet) -- AbbVie (ABBV) shares are up 1.99% to $66.78 in afternoon trading on Tuesday after the pharmaceutical company completed its $21 billion buyout of Pharmacyclics (PCYC).
The deal will add Pharmacyclics' blood cancer treatment Imbruvica to Abbvie's drug portfolio which already features the world's top selling drug Humira.
The closing of the deal comes after the company ended its $55 billion tax inversion bid for U.K.-based Shire Pharmaceuticals (SHPG) earlier this year.
"The companies' shared expertise, combined with AbbVie's broad late-stage oncology pipeline, has the potential to transform the cancer treatment landscape for hematological malignancies and improve patient outcomes and quality of life," said AbbVie CEO Richard A. Gonzalez.
"Today marks a significant step forward in our effort to become a leader in oncology and meaningfully augment our long-term growth strategy. The Pharmacyclics team has built an important and rapidly growing franchise with significant long-term potential across a range of hematological cancers," he said.
TheStreet Ratings team rates ABBVIE INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate ABBVIE INC (ABBV) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and good cash flow from operations. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet."