Pill bottle with money The expected cost savings from the deal will buy both companies more time, but not solve their long-term issues as both company’s blockbuster drugs have begun to face pressure from competition. (Photo: Shutterstock)

AbbVie Inc. has agreed to pay $63 billion for rival drugmaker Allergan Plc, the latest huge merger in a pharmaceutical sector rapidly being reshaped by deals.

Allergan will get $188.24 a share in cash and stock, a 45 percent premium to its closing price on Monday. Allergan shares rose 31 percent to $170.25 in premarket trading in the U.S. early Tuesday. AbbVie was down 8.2 percent to $72.

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