To expedite the pharmaceutical company’s entry into the ovarian cancer therapy market, AbbVie is purchasing ImmunoGen in a deal estimated to be worth $10.1 billion.
The ovarian cancer medication Elahere, created by ImmunoGen Inc., is potentially worth billions of dollars in future sales, according to AbbVie.
“AbbVie’s CEO and Chairman Richard Gonzalez said in a statement on Thursday that the company is committed to executing its long-term growth plan, and the acquisition of ImmunoGen allows us to further diversify our oncology pipeline across solid tumors and hematologic malignancies.”
AbbVie will compensate each ImmunoGen share with $31.26 in cash.
The deal was accepted by the boards of both firms, and it is anticipated to close in the middle of 2024. Regulators and ImmunoGen shareholders still need to approve it.
Elahere received expedited permission from US regulators in 2022, and the firm is currently pursuing both additional market growth and full approval from the Food and Drug Administration. It also intends to increase Elahere’s utility.
According to ImmunoGen, Elahere generated almost all of the company’s sales in the third quarter of this year, or $105.2 million.
This year, AbbVie has had to contend with less expensive rivals for its best-selling medication, Humira, which treats autoimmune diseases. Crohn’s disease, ulcerative colitis, and rheumatoid arthritis are all treated with injectable biologic medication.
About 36% of AbbVie’s total income last year came from Humira, which generated $21 billion in total revenue. In 2021, the biologic treatment generated over $20 billion in revenue.
Before the start of trading, AbbVie’s stock experienced a minor decline, while ImmunoGen’s shares surged by over 82%.
