AbbVie completes acquisition of psychedelic compound for depression

NORTH CHICAGO - AbbVie (NYSE:ABBV), a prominent biotechnology player with a market capitalization of $400.78 billion and currently trading near its 52-week high, announced Friday it has completed its acquisition of bretisilocin, a novel psychedelic compound from Gilgamesh Pharmaceuticals that is currently in Phase 2 clinical development for major depressive disorder (MDD). According to InvestingPro analysis, the company is trading close to its Fair Value, with strong momentum reflected in its 33% gain over the past six months.

Bretisilocin is a short-acting serotonin 5-HT2A receptor agonist and 5-HT releaser designed to overcome development challenges seen with traditional psychedelic compounds. The drug is being evaluated for patients with moderate-to-severe depression.

"Recent clinical results have demonstrated the potential of bretisilocin to treat patients living with MDD," said Daniel Mikol, vice president of neuroscience development at AbbVie. "We look forward to accelerating the development of this next-generation compound."

The acquisition expands AbbVie’s psychiatry pipeline as the company aims to strengthen its position in mental health treatments. Financial terms of the transaction were not disclosed in the press release.

Bretisilocin represents part of a growing pharmaceutical interest in psychedelic-based therapies for mental health conditions. Unlike traditional psychedelics, next-generation compounds like bretisilocin are being engineered to address specific clinical development challenges.

AbbVie’s core therapeutic areas include immunology, oncology, neuroscience and eye care, along with its Allergan Aesthetics portfolio.

The acquisition announcement comes amid increasing research into novel approaches for treating depression, particularly for patients who don’t respond adequately to current standard treatments.

In other recent news, AbbVie is experiencing a series of notable developments. The company’s third-quarter earnings report, set for October 31, is anticipated to show solid results, according to Raymond James, which has raised its price target for AbbVie from $236 to $250, maintaining an Outperform rating. Cantor Fitzgerald has reiterated its Overweight rating and a $250 price target, although it adjusted its earnings model to account for a planned IPR&D charge, affecting its future earnings per share estimates. Erste Group, however, downgraded AbbVie from Buy to Hold due to a reduction in the company’s full-year 2025 earnings guidance.

In regulatory news, the FDA has approved an updated indication for AbbVie’s RINVOQ, expanding its use in treating certain inflammatory bowel diseases. Piper Sandler also increased its price target for AbbVie from $231 to $284, citing strong performance across the company’s portfolio, particularly in resolving generic settlements related to RINVOQ. These developments reflect a dynamic period for AbbVie, with analysts offering varied perspectives on the company’s financial outlook.

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