NORTH CHICAGO, Ill. - AbbVie (NYSE: NYSE:ABBV), a global biopharmaceutical company, has completed the acquisition of Celsius Therapeutics, a biotechnology firm focused on treatments for inflammatory diseases, in a cash transaction valued at $250 million, subject to customary adjustments. The announcement made today highlights the strategic expansion of AbbVie's immunology portfolio with the addition of Celsius' lead investigational drug, CEL383, designed to combat inflammatory bowel disease (IBD).
CEL383 is a potentially pioneering anti-TREM1 antibody that has recently concluded a Phase 1 clinical study. TREM1, a gene identified as a significant factor in IBD, contributes to inflammation by amplifying several known inflammatory pathways. By targeting TREM1, CEL383 aims to reduce inflammation and ultimately aid patients in achieving remission from IBD.
Kori Wallace, M.D., Ph.D., vice president and global head of immunology clinical development at AbbVie, expressed the company's eagerness to advance CEL383's development, citing the potential impact on patient remission rates. In alignment, Tariq Kassum, M.D., CEO of Celsius, acknowledged the efforts of the Celsius team in discovering CEL383 and expressed optimism about the drug's future under AbbVie's stewardship.
The acquisition consolidates AbbVie's commitment to addressing serious health issues, with a focus on immunology, oncology, neuroscience, eye care, and its Allergan (NYSE:AGN) Aesthetics portfolio. Celsius Therapeutics, prior to the acquisition, was a clinical-stage biotech company based in Cambridge, Mass., dedicated to developing novel medicines for inflammatory diseases.
This news is based on a press release statement and includes forward-looking statements that involve risks and uncertainties. AbbVie has cautioned that actual results may differ materially from those projected due to various factors including intellectual property challenges and research and development difficulties. The company has provided additional information regarding risks in its 2023 Annual Report and subsequent Quarterly Reports filed with the Securities and Exchange Commission.
In other recent news, AbbVie has been making significant strides in its operations and product portfolio. The pharmaceutical giant has announced the launch of Allē Payment Plans, a program aimed at making aesthetic treatments more financially accessible to patients. This initiative comes in response to market research indicating that cost concerns are a major barrier for potential patients.
In addition to this, AbbVie has received a Complete Response Letter from the FDA regarding its New Drug Application for ABBV-951, a treatment for Parkinson's disease. While the letter cites concerns with a third-party manufacturing facility, it does not question the safety or efficacy of the drug.
On the analyst front, Piper Sandler has raised its price target for AbbVie from $185.00 to $190.00, maintaining an Overweight rating. Deutsche Bank has reiterated its Hold rating on AbbVie, while Cantor Fitzgerald has initiated coverage on the company with an Overweight rating and a 12-month price target of $200.
AbbVie has also finalized its acquisition of Landos Biopharma, adding the promising investigational drug, NX-13, to its portfolio. Furthermore, the company has entered into a partnership with FutureGen Biopharmaceutical to develop FG-M701, a novel TL1A antibody aimed at treating inflammatory bowel disease.
Despite these developments, AbbVie is implicated in opioid crisis settlements exceeding $46 billion. Lastly, despite the presence of biosimilars, AbbVie's flagship arthritis medication, Humira, has maintained over 80% of its patient base. These are some of the recent developments concerning AbbVie.
InvestingPro Insights
AbbVie's strategic acquisition of Celsius Therapeutics is set to bolster its robust immunology pipeline, further entrenching its position as a prominent player in the Biotechnology industry. With a focus on innovation and a track record of success, AbbVie has raised its dividend for 11 consecutive years, underlining its commitment to shareholder returns. Additionally, the company's net income is expected to grow this year, as reflected in recent market performance and analyst forecasts.
InvestingPro Data indicates a strong financial profile for AbbVie, with a significant market capitalization of $304.12 billion USD and a high operating income margin of 32.11% for the last twelve months as of Q1 2024. Despite a slight decline in revenue growth at -4.12% during the same period, the company maintains a robust gross profit margin of 69.17%, highlighting efficient operations and a solid foundation for future growth.
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