US pharmaceutical giant AbbVie announced on Monday that it will acquire biotechnology company Apogee Therapeutics for $10.9 billion, marking its largest merger and acquisition transaction in more than five years. The deal aims to strengthen AbbVie’s therapeutic pipeline in inflammatory diseases such as atopic dermatitis and asthma, and to secure Apogee’s lead candidate drug, zumilokibart.
Locally on Monday, June 23, AbbVie, a leading US pharmaceutical company, declared its acquisition of Apogee Therapeutics for $10.9 billion. This transaction represents the company’s largest M&A deal in over five years, intended to enhance its pipeline in inflammatory conditions including atopic dermatitis and asthma.
Following the announcement, Apogee’s shares surged approximately 47% during intraday trading, while AbbVie’s shares rose by 7%.
According to AbbVie’s definition, a “super-blockbuster” drug refers to a product with annual sales exceeding $10 billion. Under the agreement, AbbVie will acquire Apogee at a price of $135.11 per share, with the transaction funding primarily sourced through debt financing. JPMorgan analyst Chris Schott noted that market investors have been anticipating large pharmaceutical companies to bring in more late-stage R&D assets, and therefore expects this deal to be well received by investors. Several analysts believe that zumilokibart has the potential to become a strong competitor to Sanofi’s blockbuster drug Dupixent in the future, while offering a more convenient dosing regimen. Currently, Dupixent typically requires injections every two weeks for the treatment of atopic dermatitis; however, ongoing clinical studies of zumilokibart suggest that the drug could be administered via subcutaneous injection once every three months or even every six months, significantly reducing the frequency of patient dosing. RBC Capital Markets analyst Brian Abrahams commented, “We believe this transaction carries sound strategic logic, and AbbVie is also the most suitable acquirer to unlock zumilokibart’s commercial potential.” AbbVie expects the transaction to close in the third quarter of this year and to begin accretive to the company’s adjusted earnings per share (EPS) starting in 2032. AbbVie also stated that it will continue to adhere to its capital return strategy of increasing dividend levels, while still retaining sufficient financial flexibility to support further M&A activities in the future. Citi analysts believe that given Apogee’s strong clinical data and the scarcity of high-quality immunology assets, the acquisition premium paid by AbbVie is not considered excessive.
