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NORTH CHICAGO/NEW YORK - AbbVie (NYSE:ABBV), a $371 billion market cap pharmaceutical giant with over $58 billion in annual revenue, announced Monday it will acquire Gilgamesh Pharmaceuticals’ lead investigational depression treatment bretisilocin for up to $1.2 billion, expanding its psychiatric drug pipeline. According to InvestingPro, AbbVie maintains strong financial health with an impressive 71% gross profit margin.
The deal includes an upfront payment and development milestones for bretisilocin (GM-2505), a novel psychedelic compound currently in Phase 2 development for major depressive disorder (MDD). As part of the transaction, Gilgamesh will spin off a new entity, Gilgamesh Pharma Inc., to retain its other drug programs and employees. The acquisition comes as AbbVie trades near its 52-week high, with InvestingPro analysis showing strong momentum and 13 analysts recently revising their earnings estimates upward.
Bretisilocin is designed to address limitations of existing psychedelic treatments by providing a shorter duration of psychoactive experience while maintaining therapeutic benefits. The compound recently showed positive results in a Phase 2a study, demonstrating a 21.6-point reduction in depression symptoms from baseline at Day 14 after a single 10mg dose, compared to a 12.1-point reduction with a low-dose comparator.
"The field of psychiatry represents one of the most challenging areas in medicine, with a significant need for innovative solutions," said Roopal Thakkar, executive vice president and chief scientific officer at AbbVie, in a statement based on the press release.
The acquisition builds upon a 2024 collaboration between the companies to develop next-generation psychiatric therapies. This option-to-license agreement will transfer to the new Gilgamesh entity following the spinoff.
Gilgamesh’s remaining portfolio includes blixeprodil (GM-1020), an oral NMDA receptor antagonist currently completing a Phase 2a study in MDD.
The transaction is subject to customary closing conditions. Covington & Burling LLP is serving as legal counsel to AbbVie, while Centerview Partners LLC and Ropes & Gray LLP are acting as financial advisor and legal counsel to Gilgamesh, respectively.
In other recent news, AbbVie announced that its drug upadacitinib (RINVOQ) achieved significant hair regrowth in patients with severe alopecia areata during a Phase 3 clinical trial. The trial results showed that 45.2% of patients on the 15 mg dose and 55.0% on the 30 mg dose experienced at least 80% scalp hair coverage after 24 weeks. Additionally, AbbVie completed its acquisition of Capstan Therapeutics, bringing a novel lipid nanoparticle therapy, CPTX2309, under its portfolio for B cell-mediated autoimmune diseases. In terms of investment, AbbVie is expanding its manufacturing capabilities in North Chicago with a $195 million investment to enhance the production of pharmaceutical ingredients. Analyst firms have shown positive sentiment, with Cantor Fitzgerald raising its price target for AbbVie to $215 due to strong Skyrizi performance. Piper Sandler also assumed coverage with an Overweight rating, citing AbbVie’s limited exposure to patent expiration risks. These developments reflect AbbVie’s strategic advancements and market positioning.
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