AbbVie Piles on $8 Billion in Debt for Its Apogee Deal -- Should Dividend Investors Worry?
The pharmaceutical company hopes that another big-time acquisition will pay off.
Overview
AbbVie (NYSE: ABBV) is aiming high with its $10.6 billion planned purchase of Apogee Therapeutics (NASDAQ: APGE). The deal, pending regulatory approvals, is expected to close in the third quarter.
The move is designed to supplement the pharmaceutical giant's already strong immunology portfolio. However, to fund the acquisition of the biotech company, AbbVie is taking on significant debt, which concerns some analysts. The payoff, AbbVie says, likely won't come for six years, with the deal not expected to boost adjusted earnings per share (EPS) until 2032.
Details
Here are three reasons the deal makes sense, particularly for long-term investors:
Source
Originally published at www.fool.com.
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