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AbbVie and OSE Immunotherapeutics ink $713M deal

Published 28/02/2024, 14:14
Updated 28/02/2024, 14:14
© Reuters.

NORTH CHICAGO, Ill. - AbbVie Inc . (NYSE: NYSE:ABBV) and OSE Immunotherapeutics SA (ISIN: FR0012127173; Mnemo: OSE) have entered a strategic partnership to develop a novel monoclonal antibody, OSE-230, aimed at treating chronic inflammation. The deal, announced today, could be worth up to $713 million.

OSE-230, still in the pre-clinical stage, is designed to activate ChemR23, a G-Protein Coupled Receptor (GPCR) target, which could introduce a new method for resolving chronic inflammation by modulating macrophages and neutrophils.

AbbVie will have an exclusive global license to develop, manufacture, and commercialize OSE-230. OSE Immunotherapeutics will receive an upfront payment of $48 million and is eligible for up to an additional $665 million contingent on achieving certain clinical, regulatory, and commercial milestones. Furthermore, the French biotech company stands to earn tiered royalties on the global net sales of the product.

The transaction is subject to customary closing conditions, including clearance under the Hart-Scott-Rodino Antitrust Improvements Act.

This partnership is a significant step for OSE Immunotherapeutics, showcasing the company's innovative research and development capabilities. Nicolas Poirier, CEO of OSE Immunotherapeutics, expressed gratitude towards the team for their hard work leading to this milestone.

AbbVie, a company with a robust portfolio in immunology, oncology, neuroscience, eye care, and aesthetics, sees this collaboration as an expansion of their immunology portfolio, aiming to improve the standard of care for patients with inflammatory diseases globally.

The information in this article is based on a press release statement from AbbVie and OSE Immunotherapeutics.

InvestingPro Insights

In light of AbbVie's recent strategic partnership with OSE Immunotherapeutics, investors may find the following insights from InvestingPro particularly relevant. AbbVie, a giant in the biotechnology industry with a market capitalization of $316.18 billion, continues to demonstrate its commitment to innovation and growth in the sector. The company has a history of increasing its dividends, having done so for 11 consecutive years, which underscores its financial stability and dedication to shareholder returns.

InvestingPro data shows a notable P/E ratio for AbbVie at 23.9 for the last twelve months as of Q4 2023, which may suggest a higher valuation compared to the industry average. However, it's also important to consider the company's strong gross profit margin of 69.21% during the same period, indicating efficient management and a robust business model. Additionally, the dividend yield is currently at 3.46%, which is attractive to investors seeking income in addition to growth.

Among the InvestingPro Tips, two stand out in the context of this partnership: AbbVie is expected to see net income growth this year, and analysts predict the company will be profitable. These factors, combined with the company's strategic moves to expand its immunology portfolio, could signal a positive outlook for AbbVie's financial performance and stock value.

For investors looking to dive deeper into AbbVie's financials and future prospects, InvestingPro offers a wealth of additional tips. There are 14 more InvestingPro Tips available that provide further insights into AbbVie's performance and market position. To access these tips and enhance your investment strategy, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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