AbbVie climbs post-Allergan M&A peak with Apogee buy

AbbVie has announced its biggest acquisition since the $63 billion mega-merger with Allergan in 2020, agreeing to take control of immunology specialist Apogee Therapeutics in a $10.9 billion deal.

The latest in an ever-lengthening list of large biopharma acquisitions this year – and, by our reckoning, the fourth valued above $10 billion – will give AbbVie rights to zumilokibart (APG777), an anti–IL-13 antibody, that is being developed for atopic dermatitis and other inflammatory diseases and could be a rival to Sanofi and Regeneron's near-$18 billion blockbuster Dupixent (dupilumab).

AbbVie has offered $135.11 per share in cash for Apogee, which was founded in 2022 and completed its IPO in 2023, raising $300 million and giving it a valuation of $810 million. The company expects the takeover to be finalised in the third quarter of this year.

Analysts at JPMorgan said, after the deal was rumoured in a Financial Times article, that Apogee would be a strong fit for AbbVie, which is a major player in immunology, with current and former blockbuster drugs like Skyrizi (risankizumab), Rinvoq (upadacitinib), and Humira (adalimumab).

AbbVie's financial muscle could also accelerate the development of zumilokibart in additional indications, they wrote in a research note, whilst bolstering what they view as a somewhat light late-stage pipeline.

Apogee has pitched APG777 as a 'best-in-class' IL-13 inhibitor that could offer robust efficacy and less-frequent dosing than rivals, potentially requiring injections only every three or six months as a maintenance treatment. Dupixent, for example, needs to be given every two to four weeks.

Meanwhile, buying Apogee will also give AbbVie follow-up combinations of zumilokibart with other antibodies; namely, anti-OX40L APG990 and anti-TSLP APG333.

The former combination (APG279) is being compared to Dupixent in a phase 1b trial in atopic dermatitis, while the latter (APG273) is in preclinical development with plans to run studies in asthma and chronic obstructive pulmonary disease (COPD). AbbVie said Apogee's pipeline offers "mega-blockbuster peak sales potential."

"For more than two decades, AbbVie has led and shaped the field of immunology, bringing the science, scale, and expertise needed to address some of the most complex diseases," said Robert Michael, the pharma group's chairman and chief executive.

"The acquisition of Apogee further builds on our existing leadership, strengthening our ability to deliver innovative medicines to patients who need better options while also creating significant long-term value for shareholders," he added.

So far this year, the largest M&D deals involving biopharma companies are the $12 billion takeover of Recordati by private equity companies CVC and GBL, Sun Pharma's $11.75 billion play for biosimilar developer Organon, and GSK's $10.6 billion purchase of oncology specialist Nuvalent for $10.6 billion.