AbbVie Stock Ticks Up as $10.9B Apogee Deal Reinforces Immunology Dominance
Mondeum Capital (UK) Limited
AbbVie is focusing even more on what it does best. On Monday, the company said it will buy Apogee Therapeutics for $135.11 per share in cash, a deal worth $10.9 billion. Both companies’ boards have approved the deal, which should close in the third quarter. After the news, Apogee shares jumped 47% to $132.94 in premarket trading, and AbbVie shares rose 0.7%. Here’s what Apogee adds to AbbVie’s portfolio, and why this deal is both a defensive and an offensive move.
Apogee’s main drug candidate, Zumilokibart, is aimed at treating atopic dermatitis and has a clear advantage in how often it needs to be given. The current standard, Dupixent from Regeneron and Sanofi, is injected every two weeks. In contrast, Zumilokibart only needs to be given every three to six months. According to BMO Capital Markets analysts, Zumilokibart may work a bit better than Dupixent and is easier for patients to use. In this market, how a drug is delivered can be just as important as how well it works, so this difference could be a big selling point.
This deal aligns well with AbbVie’s strong immunology business, which generated $7.3 billion last quarter, nearly half of the company’s total sales. That business was built on Humira, which was the industry’s top-selling drug for five years before it lost its U.S. patent in 2023 and began facing competition from similar drugs. Skyrizi and Rinvoq have helped offset Humira’s decline, but now Skyrizi faces new competition from Johnson & Johnson’s daily pill, Icotyde, which could attract patients seeking the convenience of a pill rather than quarterly injections.
Buying Apogee helps AbbVie strengthen its immunology pipeline before competition for Skyrizi gets tougher. AbbVie also said the deal will accelerate its work on respiratory treatments. Unlike other companies moving into new areas, such as Eli Lilly, which just bought 4E Therapeutics to enter the non-opioid painkillers market, AbbVie is choosing to invest more in the business it already leads.
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