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Investing.com - Morgan Stanley (NYSE:MS) has reiterated an Overweight rating and $250.00 price target on AbbVie (NYSE:ABBV), a prominent player in the Biotechnology industry with a market capitalization of $326.4 billion, following the company’s acquisition announcement. According to InvestingPro data, 10 analysts have recently revised their earnings expectations upward for the upcoming period.
AbbVie announced Monday an agreement to acquire Capstan Therapeutics, a clinical-stage biotech company focused on engineering cells in vivo through RNA delivery. The acquisition will cost AbbVie up to $2.1 billion in cash at closing, subject to certain closing conditions. With robust financials including a 71% gross profit margin and strong revenue growth of 5.45% over the last twelve months, AbbVie appears well-positioned to integrate this acquisition.
The deal includes CPTX2309, an in vivo anti-CD19 CAR-T product currently in Phase 1 development for treating B cell-mediated autoimmune diseases. AbbVie will also acquire Capstan’s liquid nanoparticle platform technology designed to deliver RNA payloads, which can engineer specific in vivo cell types.
Morgan Stanley views this acquisition as an incremental positive for AbbVie, noting that it expands the company’s platform optionality and strengthens its early-stage immunology pipeline.
The acquisition aligns with AbbVie’s previously stated strategy that the company has runway to grow for eight years, with recent platform technology deals providing optionality within this timeframe.
In other recent news, AbbVie has announced a definitive agreement to acquire Capstan Therapeutics for up to $2.1 billion in cash. This acquisition will allow AbbVie access to Capstan’s lead asset, CPTX2309, a potential first-in-class therapy currently in Phase 1 development for B cell-mediated autoimmune diseases. In another development, the U.S. Food and Drug Administration has accepted Allergan (NYSE:AGN) Aesthetics’ application for SKINVIVE by JUVEDERM to treat neck lines, potentially expanding Allergan’s portfolio if approved. AbbVie also declared a quarterly cash dividend of $1.64 per share, continuing its tradition of increasing dividends since its formation. Furthermore, AbbVie’s migraine prevention drug, atogepant, showed superior results in a Phase 3 trial, demonstrating better tolerability and efficacy compared to topiramate. Meanwhile, discussions within the Trump administration are considering new limits on pharmaceutical advertising, which could impact the industry’s advertising capabilities. These developments highlight AbbVie’s ongoing strategic initiatives and regulatory activities in the pharmaceutical landscape.
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