NORTH CHICAGO, Ill. - In a move to expand its neuroscience portfolio, pharmaceutical giant AbbVie (NYSE: NYSE:ABBV) has announced the acquisition of biotech firm Aliada Therapeutics. The deal, valued at $1.4 billion, is set to close in the fourth quarter of 2024, subject to regulatory approvals and other customary closing conditions.
Aliada Therapeutics, known for its pioneering blood-brain barrier (BBB)-crossing technology, is currently developing ALIA-1758, an antibody aimed at treating Alzheimer's disease by targeting amyloid beta plaques in the brain. This compound is in Phase 1 clinical trials and is being watched closely for its potential to modify the course of the disease.
AbbVie's executive vice president, Roopal Thakkar, M.D., emphasized the strategic nature of the acquisition, stating that it "immediately positions us to advance ALIA-1758, a potentially best-in-class disease-modifying therapy for Alzheimer's disease." He further noted the importance of Aliada's BBB-crossing technology in enhancing the company's research and development capabilities for neurological disorders.
Michael Ryan, M.D., chief medical officer at Aliada Therapeutics, expressed enthusiasm about the acquisition and the potential for their MODEL™ platform to transform the treatment of neurological diseases. Aliada's platform targets specific receptors to deliver drugs across the BBB, a significant challenge in the development of CNS-targeted therapies.
The acquisition comes with the backdrop of Aliada's successful seed financing in 2021, supported by Johnson & Johnson Innovation – JJDC, Inc., RA Capital Management, and others, which was instrumental in advancing the MODEL™ platform technology.
As part of the transaction, AbbVie's legal advisor was Covington & Burling LLP, while Aliada was advised financially by Centerview Partners LLC and legally by Fenwick & West LLP.
The acquisition is based on a press release statement and represents a significant step for AbbVie in addressing critical unmet needs in the treatment of Alzheimer's disease and other serious neurological conditions.
In other recent news, AbbVie has announced a new partnership with Gedeon Richter Plc. to develop treatments for neuropsychiatric conditions, building on their nearly two-decade long collaboration. The deal involves both preclinical and clinical R&D, with Richter receiving a $25 million upfront payment and potential additional milestones and royalties. AbbVie retains worldwide commercialization rights, with some exceptions.
In financial updates, AbbVie's revenue forecasts remain steady, with estimates set at $55.6 billion for 2024, $59.5 billion for 2025, and $63.7 billion for 2026, despite adjustments in its 2024 profit outlook due to increased research and development costs. Analyst firms BofA Securities, Truist Securities, and Morgan Stanley (NYSE:MS) have updated their price targets for AbbVie, maintaining Neutral, Buy, and Overweight ratings respectively.
On the development front, AbbVie has received FDA approval for VYALEV™, a 24-hour continuous infusion therapy for adults with advanced Parkinson's disease. Additionally, the company has submitted a Biologics License Application for the approval of Teliso-V, a potential new treatment for a subset of lung cancer patients. These are among the recent developments for AbbVie.
InvestingPro Insights
AbbVie's acquisition of Aliada Therapeutics aligns with its strategic focus on expanding its neuroscience portfolio, particularly in the high-potential area of Alzheimer's disease treatment. This move is reflected in several key metrics and insights from InvestingPro.
According to InvestingPro data, AbbVie boasts a substantial market capitalization of $331.81 billion, underscoring its position as a major player in the pharmaceutical industry. This financial strength provides the company with the resources to pursue strategic acquisitions like Aliada Therapeutics.
An InvestingPro Tip highlights that AbbVie is a "prominent player in the Biotechnology industry," which is further reinforced by this acquisition. The company's commitment to growth and innovation is evident in another InvestingPro Tip, which notes that "net income is expected to grow this year." This projected growth could be partly attributed to strategic moves like the Aliada acquisition, which aims to bolster AbbVie's pipeline in neuroscience.
The company's financial health is also reflected in its dividend policy. An InvestingPro Tip reveals that AbbVie "has raised its dividend for 12 consecutive years," demonstrating a track record of returning value to shareholders while investing in future growth opportunities.
It's worth noting that InvestingPro offers 12 additional tips for AbbVie, providing investors with a comprehensive view of the company's financial position and market performance. These insights can be valuable for those looking to understand the full impact of strategic decisions like the Aliada Therapeutics acquisition on AbbVie's long-term prospects.
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