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Cerevel Therapeutics (NASDAQ:CERE) quickly fell 4% amid a report about the Federal Trade Commission’s review of its sale to AbbVie.
The staff of the FTC’s Mergers 1 section is said to be apparently considering a recommendation to block the Cerevel (CERE) deal, according to a CTFN report on Wednesday, which cited a source familiar with the matter. The theory of harm likely pertains to potential bundling.
It’s still not clear at this point what the FTC will decide in their review, according to the report. CTFN has previously said in earlier items that there is little merit for finding theories of harm in the deal.
It’s possible that the consideration of a potential memo is normal dual-course tracking with a contentious deal, according to the report. The Republican commissioners aren’t likely to support the bundling theory.
The latest CTFN report comes after Capitol Forum said late last month that AbbVie (ABBV) and Cerevel (CERE) were gaining confidence about the FTC clearing the $8.7 billion transaction.
Last month AbbVie’s (ABBV) Chief Operating Officer reiterated that the company expects the deal to close by the middle of the year.
“We’re making very good progress with that piece,” AbbVie COO Robert Michael said at the Goldman Sachs 45th Annual Global Healthcare Conference. “We continue to expect to close the transaction in the middle part of the year.”
Cerevel (CERE) and AbbVie disclosed in February that they received second requests from the FTC for additional information regarding their planned deal. In early December, AbbVie announced plans to acquire Cerevel for $45 per share, or roughly $8.7B, in cash.