AbbVie completes acquisition of Landos Biopharma to strengthen immunology portfolio


AbbVie Inc. (NYSE: ABBV), a global biopharmaceutical leader, has announced the completion of its acquisition of Landos Biopharma, Inc. (NASDAQ: LABP), a clinical-stage biopharmaceutical company, for a total consideration of $137.5 million. This strategic acquisition underscores AbbVie’s commitment to expanding its robust immunology portfolio.

Acquisition Details and Future Prospects

The acquisition deal, which was first announced in March 2024, includes a cash payment of $20.42 per share and an additional contingent value right per share, potentially worth up to $11.14, subject to achieving a specific clinical development milestone. This brings the total potential deal value to approximately $212.5 million. Following the acquisition, Landos’ common stock will cease to trade on the NASDAQ stock exchange from May 24, 2024.

See also  Suven Pharmaceuticals and Cohance Lifesciences announce merger

Enhancing Treatment for Inflammatory Bowel Disease

Landos’ leading investigational asset, NX-13, is a pioneering oral NLRX1 agonist currently in Phase 2 trials for the treatment of moderate to severe ulcerative colitis (UC). This therapeutic, known for its dual anti-inflammatory and epithelial repair mechanisms, represents a potentially groundbreaking approach to managing inflammatory bowel diseases (IBD), including UC and Crohn’s Disease (CD).

AbbVie wraps up strategic acquisition of Landos Biopharma for $137.5 million to enhance its immunology portfolio and promises advancements in IBD treatment.

AbbVie wraps up strategic acquisition of Landos Biopharma for $137.5 million to enhance its immunology portfolio and promises advancements in IBD treatment.

Dr. Kori Wallace, Vice President and Global Head of Immunology Clinical Development at AbbVie, emphasized the significance of this acquisition: “Many people living with IBD are not able to achieve or maintain remission and continue to experience debilitating symptoms. The addition of NX-13 complements our portfolio in immunology and strengthens our collective efforts to transform standard of care. I want to commend the Landos team for their efforts in advancing our shared mission of developing medicines for those who need it most.”

See also  AbbVie to acquire Landos Biopharma to bolster autoimmune disease treatments

Strategic Implications and Industry Impact

This acquisition is pivotal for AbbVie as it bolsters the company’s leadership in the immunology market by integrating a novel therapeutic that could potentially alter the treatment landscape for millions suffering from IBD. The move also reflects AbbVie’s strategy of pursuing targeted acquisitions to enhance its pipeline with high-potential, innovative therapies.

See also  Roche to acquire Ignyta for $1.7bn to enhance oncology portfolio

The broader implications for the pharmaceutical industry include a continued trend towards consolidation, particularly in specialized therapeutic areas such as immunology where the development of new treatments can significantly improve patient outcomes.

Share This