AbbVie to Strengthen Immunity Illness Drug Pipeline Through Landos Deal

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AbbVie (ABBV.N) has announced its acquisition of drug developer Landos Biopharma (LABP.O) for up to $212 million, as part of its strategy to bolster its pipeline of medicines targeting immune system-related disorders. The acquisition comes as AbbVie seeks to expand its portfolio of treatments for inflammatory bowel diseases, such as ulcerative colitis.

Currently, Landos is conducting a mid-stage clinical trial of its lead experimental drug, NX-13, for the treatment of ulcerative colitis. This acquisition aligns with AbbVie’s existing efforts in this therapeutic area, as its blockbuster drug Rinvoq is already approved for the treatment of ulcerative colitis, and AbbVie has also sought FDA approval for Skyrizi, another key drug targeting this condition.

Under the terms of the agreement, AbbVie will acquire Landos for $20.42 per share in cash, totaling approximately $137.5 million. This offer represents a significant premium of 161% over Landos’ closing price of $7.83 on Friday. Additionally, AbbVie has agreed to pay Landos shareholders up to an additional $11.14 per share, contingent on the achievement of certain clinical development milestones, totaling approximately $75 million.

Following the announcement, Landos’ shares surged to $22.13 before the trading halt, reflecting investor optimism about the acquisition and the potential of Landos’ pipeline assets. The transaction is expected to close in the second quarter of the year, pending customary closing conditions and regulatory approvals.