AbbVie has signed a deal to buy ImmunoGen for $10.1 billion, acquiring Elahere, a cancer drug approved for ovarian cancer patients. The deal will boost AbbVie’s expansion into the cancer drug market.
On Thursday, AbbVie announced it will buy ImmunoGen for $10.1 billion, demonstrating large drugmakers’ rising interest in promising targeted cancer medicines.
The transaction gives AbbVie Elahere, which is approved for ovarian cancer patients who have received previous therapies and is being studied in early lines.
Antibody drug conjugates (ADC) like Elahere use a monoclonal antibody to target cancer cells and decrease cell toxicity.
Drugmakers are showing increased interest in ADCs due to their tailored approach. Seagen, a pioneer in antibody-drug conjugates, is being acquired by Pfizer for $43 billion.
AbbVie will pay $31.26 per share in cash for ImmunoGen, a 94.6% premium to the closing price.
Immunogen’s shares rose 90% to $29.23 premarket after the transaction news. After the business announced in May that Elahere extended patients’ lives in a late-stage experiment, they tripled this year.
The transaction would help AbbVie grow into the cancer medicine market as its top-selling rheumatoid arthritis therapy Humira faced tough US competition.
AbbVie’s blockbuster blood cancer medicine Imbruvica was one of 10 drugs selected for the initial price negotiations by U.S. Medicare insurance plans in August, expected to take effect in 2026.
Conclusion
AbbVie bought ImmunoGen for $10.1 billion, reflecting increased interest in targeted cancer medicines. AbbVie will receive Elahere, an authorized ovarian cancer medication being studied in earlier treatment lines. This new class of cancer treatments, antibody drug conjugates (ADC), targets cancer cells and reduces toxicity. Pfizer is buying Seagen for $43 billion. AbbVie will pay $31.26 per share in cash, 94.6% over the closing price. AbbVie’s top-selling medication Humira faces stiff US competition, thus the transaction will help it grow into cancer drugs.
