Asia stocks edge higher as tech meanders on Nvidia; Hong Kong hit by soft earnings
Investing.com - Raymond James has reiterated an Outperform rating and $236.00 price target on AbbVie (NYSE:ABBV), a prominent player in the Biotechnology industry with a market capitalization of $367 billion, following the company’s proposed acquisition of Bretisilocin from Gilgamesh Pharmaceuticals. According to InvestingPro data, the stock has delivered an impressive 21.8% return year-to-date.
The proposed deal, valued at up to $1.2 billion, adds Bretisilocin, Gilgamesh’s lead asset currently in Phase 2 clinical trials for Major Depressive Disorder (MDD), to AbbVie’s neuroscience pipeline. The drug has a novel mechanism of action as a 5-HT2A receptor agonist and 5-HT releaser.
Recent Phase 2a data for Bretisilocin showed what Raymond James describes as a "compelling profile" in both efficacy and safety. The acquisition aligns with AbbVie’s neuroscience franchise, which Raymond James identifies as the company’s fastest-growing business segment.
The financial structure of the deal suggests AbbVie applied lessons from previous acquisitions by using less capital upfront and acquiring the CNS asset earlier in its development after Phase 2a validation but before moving into more robust Phase 2b/Phase 3 studies.
The acquisition is consistent with AbbVie’s current business development strategy to pursue smaller tuck-in deals across its key therapeutic areas to expand its pipeline and drive growth into the next decade, according to Raymond James.
In other recent news, AbbVie has announced several significant developments. The company is set to acquire Gilgamesh Pharmaceuticals’ investigational depression drug, bretisilocin, for up to $1.2 billion, including an upfront payment and development milestones. Additionally, AbbVie reported positive results from a Phase 3 clinical trial of its alopecia areata treatment, upadacitinib, which showed significant hair regrowth in patients. AbbVie has also completed its acquisition of Capstan Therapeutics, adding a targeted lipid nanoparticle therapy to its portfolio, which is currently in Phase 1 trials for B cell-mediated autoimmune diseases.
In another development, Cantor Fitzgerald raised its price target on AbbVie to $215, citing strong performance from the company’s Skyrizi drug. Furthermore, AbbVie announced a $195 million investment to expand its manufacturing capabilities in North Chicago, Illinois, as part of a broader $10 billion investment plan over the next decade. These recent developments highlight AbbVie’s ongoing efforts to expand its drug pipeline and enhance its manufacturing capabilities.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.