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AbbVie (ABBV) to Acquire ImmunoGen (IMGN) for $10.1 Billion
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AbbVie (ABBV - Free Report) has announced a definitive agreement to acquire cancer biotech ImmunoGen for $10.1 billion, including its new ovarian cancer drug, Elahere.
Elahere (mirvetuximab soravtansine) is a first-in-class antibody-drug conjugate (ADC) that was granted accelerated approval by the FDA in November 2022 for the treatment of platinum-resistant ovarian cancer (PROC). AbbVie believes the acquisition will diversify its oncology pipeline across solid tumors and hematologic malignancies.
Per the deal terms, AbbVie will pay ImmunoGen $31.26 per share in cash, which adds up to a total equity value of approximately $10.1 billion. The purchase price of $31.26 represents quite a rich premium of almost 95% on ImmunoGen’s closing price of $16.06 on Nov 29. ImmunoGen’s stock rose nearly 83% on Thursday. AbbVie’s stock was up around 2.8%.
In the year so far, AbbVie’s stock has lost 11.9% against the industry’s 4.3% rise.
Image Source: Zacks Investment Research
ImmunoGen’s stock has shot up 491.7% in the year so far against the industry’s 12.7% decline. Robust sales of Elahere, which was approved only in 2022, have led to the price increase.
Image Source: Zacks Investment Research
Elahere is the first and only ADC approved for ovarian cancer. ImmunoGen recorded $212 million in Elahere product sales in the first nine months of 2023, which exceeded management’s expectations.
AbbVie has filed a supplemental biologics license application (sBLA) with the FDA seeking to convert the accelerated approval for Elahere to full approval based on data from the MIRASOL confirmatory study. A potential approval is expected in the first half of 2024. Management has filed a marketing authorization application to the European Medicines Agency, seeking approval of Elahere in FRα-high PROC, with a potential nod expected in late 2024.
Elahere is also being evaluated in multiple studies, both as monotherapy and in combination with other drugs, for ovarian cancer, which will expand the drug’s use in earlier lines of therapy and additional patient populations. ImmunoGen has some promising ADC candidates in its pipeline, like pivekimab sunirine (in phase II studies for blastic plasmacytoid dendritic cell neoplasm) and IMGN-151 (in phase I for ovarian cancer).
The transaction is expected to close in mid-2024, subject to shareholder and regulatory approval. The boards of directors of both companies have approved the transaction.
The M&A trend of 2023 shows that there is an increasing interest in biotech companies making innovative cancer treatments. In October, Bristol Myers Squibb (BMY - Free Report) announced that it will acquire commercial-stage oncology company Mirati Therapeutics for a total equity value of $4.8 billion-plus contingent value right of approximately $1.0 billion. The acquisition will add Mirati’s new lung cancer drug Krazati(adagrasib) to BMY’s strong oncology portfolio.
In the same month, Eli Lilly (LLY - Free Report) offered to buy POINT Biopharma, a maker of next-generation radioligand therapies for treating cancers, for approximately $1.4 billion in cash. Radioligand therapy is a type of precision cancer treatment that combines a targeting compound (ligand) with a therapeutic radioisotope (a radioactive particle). The acquisition of POINT Biopharma will bolster Lilly’s portfolio of cancer drugs. Pfizer offered to buy cancer drugmaker Seagen for $43 billion in March. The acquisition is expected to be closed in late 2023 or early 2024.
Image: Shutterstock
AbbVie (ABBV) to Acquire ImmunoGen (IMGN) for $10.1 Billion
AbbVie (ABBV - Free Report) has announced a definitive agreement to acquire cancer biotech ImmunoGen for $10.1 billion, including its new ovarian cancer drug, Elahere.
Elahere (mirvetuximab soravtansine) is a first-in-class antibody-drug conjugate (ADC) that was granted accelerated approval by the FDA in November 2022 for the treatment of platinum-resistant ovarian cancer (PROC). AbbVie believes the acquisition will diversify its oncology pipeline across solid tumors and hematologic malignancies.
Per the deal terms, AbbVie will pay ImmunoGen $31.26 per share in cash, which adds up to a total equity value of approximately $10.1 billion. The purchase price of $31.26 represents quite a rich premium of almost 95% on ImmunoGen’s closing price of $16.06 on Nov 29. ImmunoGen’s stock rose nearly 83% on Thursday. AbbVie’s stock was up around 2.8%.
In the year so far, AbbVie’s stock has lost 11.9% against the industry’s 4.3% rise.
Image Source: Zacks Investment Research
ImmunoGen’s stock has shot up 491.7% in the year so far against the industry’s 12.7% decline. Robust sales of Elahere, which was approved only in 2022, have led to the price increase.
Image Source: Zacks Investment Research
Elahere is the first and only ADC approved for ovarian cancer. ImmunoGen recorded $212 million in Elahere product sales in the first nine months of 2023, which exceeded management’s expectations.
AbbVie has filed a supplemental biologics license application (sBLA) with the FDA seeking to convert the accelerated approval for Elahere to full approval based on data from the MIRASOL confirmatory study. A potential approval is expected in the first half of 2024. Management has filed a marketing authorization application to the European Medicines Agency, seeking approval of Elahere in FRα-high PROC, with a potential nod expected in late 2024.
Elahere is also being evaluated in multiple studies, both as monotherapy and in combination with other drugs, for ovarian cancer, which will expand the drug’s use in earlier lines of therapy and additional patient populations. ImmunoGen has some promising ADC candidates in its pipeline, like pivekimab sunirine (in phase II studies for blastic plasmacytoid dendritic cell neoplasm) and IMGN-151 (in phase I for ovarian cancer).
The transaction is expected to close in mid-2024, subject to shareholder and regulatory approval. The boards of directors of both companies have approved the transaction.
The M&A trend of 2023 shows that there is an increasing interest in biotech companies making innovative cancer treatments. In October, Bristol Myers Squibb (BMY - Free Report) announced that it will acquire commercial-stage oncology company Mirati Therapeutics for a total equity value of $4.8 billion-plus contingent value right of approximately $1.0 billion. The acquisition will add Mirati’s new lung cancer drug Krazati(adagrasib) to BMY’s strong oncology portfolio.
In the same month, Eli Lilly (LLY - Free Report) offered to buy POINT Biopharma, a maker of next-generation radioligand therapies for treating cancers, for approximately $1.4 billion in cash. Radioligand therapy is a type of precision cancer treatment that combines a targeting compound (ligand) with a therapeutic radioisotope (a radioactive particle). The acquisition of POINT Biopharma will bolster Lilly’s portfolio of cancer drugs. Pfizer offered to buy cancer drugmaker Seagen for $43 billion in March. The acquisition is expected to be closed in late 2023 or early 2024.
Zacks Rank
AbbVie currently has a Zacks Rank #3 (Hold) while ImmunoGen is a #2 (Buy) Ranked stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.