Prime Highlights
- AbbVie will acquire Apogee Therapeutics for $10.9 billion, marking its largest acquisition in more than five years and strengthening its pipeline for inflammatory disease treatments.
- The deal gives AbbVie access to zumilokibart, an experimental therapy that could offer less frequent dosing than competing treatments and support future growth in the company’s immunology business.
Key Facts
- AbbVie is expanding its immunology portfolio as it seeks to reduce reliance on older products facing competitive pressures.
- Apogee Therapeutics is developing zumilokibart, an experimental treatment for inflammatory diseases that may require less frequent dosing than some existing therapies.
Background
AbbVie has agreed to acquire Apogee Therapeutics in a $10.9 billion deal as the drugmaker looks to strengthen its portfolio of treatments for inflammatory diseases and support long-term growth.
The acquisition, among the largest biotechnology deals announced this year, reflects growing deal activity across the pharmaceutical industry as companies prepare for future patent expirations on key medicines. AbbVie said the transaction will expand its pipeline and reinforce its position in immunology, the company’s largest business segment.
The deal will provide AbbVie with access to Apogee’s lead drug candidate, zumilokibart, an experimental treatment being developed for conditions such as atopic dermatitis and asthma. The therapy could become an important addition to AbbVie’s immunology portfolio if approved.
AbbVie has increasingly relied on acquisitions to offset declining sales of Humira, which has faced competition from lower-cost biosimilar versions. The company is also preparing for future patent expirations of its newer immunology medicines, Skyrizi and Rinvoq.
According to the company, its immunology business generated more than $30 billion in revenue last year, driven by strong growth in Skyrizi and Rinvoq despite a sharp decline in Humira sales.
AbbVie Chief Executive Officer Robert Michael described the acquisition as a strong strategic fit and said Apogee’s pipeline has the potential to generate significant sales in the future.
Under the agreement, AbbVie will pay $135.11 per share for Apogee, representing a premium of nearly 50% to the company’s previous closing price. The transaction will be financed through debt and is expected to be completed in the third quarter.
Investors welcomed the announcement, with shares of both companies rising in early trading.
