No recommendation
No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.
(Sharecast News) - AbbVie said on Monday that it has agreed to buy clinical-stage biotechnology company Apogee Therapeutics for $10.9bn.
Under the terms of the deal, which is expected to close in the third quarter, AbbVie will pay $135.11 per share in cash.
AbbVie said the acquisition complements its existing immunology portfolio and accelerates the company's clinical presence in the respiratory space.
AbbVie said the deal has potential for "substantial" shareholder value creation with "mega-blockbuster" peak sales potential across Apogee's pipeline of assets, including its lead asset, zumilokibart (APG777). The latter is an experimental treatment targeting asthma and atopic dermatitis.
Robert A. Michael, chairman and chief executive officer of AbbVie, said: "For more than two decades, AbbVie has led and shaped the field of immunology bringing the science, scale and expertise needed to address some of the most complex diseases.
"The acquisition of Apogee further builds on our existing leadership, strengthening our ability to deliver innovative medicines to patients who need better options while also creating significant long-term value for shareholders. Apogee's pipeline adds highly differentiated clinical-stage assets, further expanding our robust immunology portfolio in areas of significant patient need, including atopic dermatitis and asthma.
"With our deep scientific expertise and proven capabilities, we are uniquely positioned to rapidly advance these programs and continue to transform the standard of care in inflammatory diseases."
Beyond zumilokibart, Apogee also has a broader pipeline of novel antibodies targeting multiple validated inflammatory pathways.
At 1315 BST, Apogee shares were up 47% in pre-market trade at $132.84.
The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.