AbbVie, Neomorph partner on protein degrader drugs

NORTH CHICAGO, Ill. - AbbVie (NYSE: NYSE:ABBV), a prominent player in the biotechnology industry with a market capitalization of $299 billion, and Neomorph, Inc. have entered into a collaboration to develop a new class of drugs known as molecular glue degraders, targeting proteins involved in cancer and immune system disorders. According to InvestingPro data, AbbVie maintains strong financial health with consistent dividend payments for 13 consecutive years. The partnership, announced today, combines AbbVie's experience in oncology and immunology with Neomorph's molecular glue discovery platform.

Molecular glue degraders are innovative small molecules that selectively bind and promote the breakdown of proteins that contribute to cancer progression and immune dysregulation. This approach aims to tackle proteins previously considered "undruggable." The collaboration could lead to the creation of groundbreaking therapies for the treatment of immune disorders and cancer.

Steven Elmore, AbbVie's vice president of small molecule therapeutics and platform technologies, expressed enthusiasm for the collaboration, emphasizing the potential of protein degraders in drug discovery. Neomorph's Co-Founder, President, and CEO, Phil Chamberlain, highlighted the company's years of work on their molecular glue platform and the opportunity to address challenging targets through the partnership with AbbVie.

Under the agreement terms, Neomorph will receive an upfront payment and is eligible for up to $1.64 billion in potential option fees and milestone payments, along with tiered royalties on future net sales.

Founded in 2020, Neomorph is venture-backed by Deerfield Management Company and has a team with a history of significant discoveries in protein degradation and molecular glues. The company aims to lead the advancement of molecular glue drug discovery and bring projects through clinical development.

This collaboration is based on a press release statement and brings together AbbVie's mission to deliver innovative medicines with Neomorph's specialized platform in an effort to develop transformative treatments. With annual revenue of $55.5 billion and a robust gross profit margin of 70%, AbbVie continues to demonstrate strong market performance. For detailed analysis and additional insights, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 top US stocks including AbbVie.

In other recent news, AbbVie, a biopharmaceutical company, has seen significant developments in its operations and collaborations. Guggenheim Securities recently adjusted its financial outlook for AbbVie, reducing the price target to $212 while maintaining a Buy rating. The firm anticipates sustained growth for AbbVie, driven primarily by its drugs Skyrizi and Rinvoq. Meanwhile, BMO Capital Markets has maintained an Outperform rating on AbbVie shares, highlighting the potential for the company's immunology and inflammation portfolio to experience growth in 2025.

AbbVie and REGENXBIO have advanced their collaborative efforts to develop a gene therapy, ABBV-RGX-314, for the treatment of two major eye diseases. The companies are planning a Phase 3 clinical program for diabetic retinopathy and anticipate pivotal trial results for wet age-related macular degeneration in 2026. Additionally, AbbVie has expanded its partnership with AbCellera, focusing on the discovery of T-cell engagers for oncology treatments.

AbbVie has adjusted its fourth-quarter earnings guidance for 2024 due to significant research and development costs, impacting by $0.88 per share. This adjustment brings AbbVie's full-year 2024 adjusted diluted earnings per share to a projected range of $10.02 to $10.06. The company also plans to record a non-cash after-tax impairment charge of approximately $3.5 billion related to the emraclidine intangible asset, due to unsuccessful trials of emraclidine, a drug under development for schizophrenia and Alzheimer's disease.

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