NORTH CHICAGO, Ill. - Pharmaceutical giant AbbVie Inc . (NYSE: NYSE:ABBV) has reached a definitive agreement to purchase clinical-stage biopharmaceutical company Landos Biopharma, Inc. (NASDAQ: LABP) for approximately $137.5 million in cash, the companies announced today. The acquisition centers on Landos' lead asset, NX-13, a novel treatment currently in Phase 2 clinical trials for ulcerative colitis (UC).
NX-13 is a first-in-class, oral NLRX1 agonist, targeting a key receptor involved in immunometabolism and inflammation. The ongoing NEXUS study is assessing the safety and efficacy of NX-13 in patients with moderate to severe UC, with results expected in the fourth quarter of 2024.
Under the terms of the agreement, AbbVie will pay $20.42 per share for Landos, plus a contingent value right per share worth up to $11.14, contingent on the achievement of a clinical development milestone. This brings the total potential value of the deal to approximately $212.5 million. The transaction is anticipated to close in the second quarter of 2024, pending regulatory approval and the approval of Landos' stockholders.
The acquisition aims to bolster AbbVie's portfolio in the immunology space, leveraging its global development expertise to advance NX-13's clinical journey. Roopal Thakkar, M.D., senior vice president and chief medical officer at AbbVie, emphasized the potential of NX-13 to make a significant difference in the treatment of UC and Crohn's disease.
Landos' president and CEO, Gregory Oakes, expressed confidence that AbbVie's leadership in therapeutic areas will be instrumental in furthering the development of NX-13.
This strategic move by AbbVie reflects its commitment to addressing the medical challenges of immunological diseases. The company has a presence across several key therapeutic areas, including immunology, oncology, neuroscience, and eye care.
The information contained in this article is based on a press release statement.
InvestingPro Insights
As AbbVie Inc. (NYSE: ABBV) gears up to enhance its immunology portfolio with the acquisition of Landos Biopharma, Inc., it's worth noting some key metrics and insights that reflect the company's financial health and market position. Here are some real-time data and InvestingPro Tips that shed light on AbbVie's current status:
InvestingPro Data:
- AbbVie's market capitalization stands at a substantial $315.97 billion, underscoring the pharmaceutical giant's significant presence in the industry.
- The company's Price/Earnings (P/E) ratio is currently high at 23.89 based on the last twelve months as of Q4 2023, indicating a premium valuation by the market.
- AbbVie has demonstrated a strong return over the last three months, with a price total return of 16.27%.
InvestingPro Tips:
- AbbVie has consistently increased its dividend for 11 consecutive years, suggesting a commitment to returning value to shareholders.
- Analysts predict that the company will be profitable this year, which could be a positive signal for investors considering the potential growth from the Landos acquisition.
These insights, along with additional tips available on InvestingPro, can provide investors with a more comprehensive understanding of AbbVie's financial landscape. There are currently 12 more InvestingPro Tips for AbbVie, which can be accessed by visiting https://www.investing.com/pro/ABBV. For those interested in a deeper dive into the company's analytics, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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