AbbVie, a leading pharmaceutical company, has announced a definitive agreement to acquire ImmunoGen, a pioneering biotechnology firm specializing in antibody-drug conjugates (ADCs), for $10.1 billion. This strategic move is anticipated to enhance AbbVie’s earnings per share starting in 2027 and is expected to be finalized by mid-2024.
ImmunoGen’s flagship product, Elahere, is a groundbreaking ADC that has received accelerated approval from the FDA for the treatment of FRα positive, platinum-resistant ovarian cancer after one to three prior systemic treatments. The drug is currently undergoing a Phase 3 trial to support a full FDA approval and a Marketing Authorization Application in the European Union.
The acquisition will also bolster AbbVie’s oncology portfolio with additional promising assets from ImmunoGen, including IMGN-151, a next-generation anti-FRα ADC for ovarian cancer in Phase 1, and Pivekimab sunirine, a Phase 2 anti-CD123 ADC for the rare blood cancer blastic plasmacytoid dendritic cell neoplasm (BPDCN), which has been granted FDA breakthrough therapy designation.
Both companies’ boards have approved the transaction, which is subject to customary closing conditions, regulatory approvals, and the green light from ImmunoGen’s shareholders.
Richard A. Gonzalez, AbbVie’s CEO, expressed that the acquisition underscores the company’s dedication to its long-term growth strategy and the expansion of its oncology pipeline. ImmunoGen’s CEO, Mark Enyedy, sees AbbVie as the perfect partner to maximize Elahere’s potential in the ovarian cancer market.
This announcement comes at a time when AbbVie is actively seeking to strengthen its position in the immunology and oncology sectors, despite a recent 6% decrease in worldwide net revenue and an 11.3% drop in global net revenue from immunology products in Q3 2023.
AbbVie’s aggressive approach in the market is further evidenced by its recent acquisition of Mitokinin for $110 million, with additional milestone-based payments potentially totaling $545 million, and its decision to terminate a collaboration with I-Mab over CD47 antibody compounds.
The ADC market is becoming increasingly attractive to Big Pharma, with Eli Lilly, BioNTech, Bristol Myers Squibb, Eisai, and GSK all making significant moves in this space. These companies are recognizing the potential of ADCs to revolutionize cancer treatment, as demonstrated by GSK’s recent Phase 3 study data showing Blenrep’s efficacy in multiple myeloma treatment.
