JPMorgan analysts noted in their report that a potential acquisition of Apogee Therapeutics Inc (NASDAQ: APGE) by AbbVie Inc (NYSE: ABBV) would be a strategically advantageous move, strengthening the pharmaceutical giant’s development pipeline.
The Financial Times reported on Friday that AbbVie is nearing a deal to acquire Apogee, a developer of treatments for inflammatory diseases, for approximately $10.9 billion in cash. This represents around a 60% premium over the company’s current market valuation.
“We believe this transaction would be a strong decision for AbbVie, as it broadens the company’s portfolio in immunology and the treatment of atopic dermatitis,” wrote JPMorgan analysts in their note.
The investment bank also highlighted the potential of Apogee’s drug, zumilokibart—an anti-inflammatory treatment expected to enter Phase 3 trials in the coming months.
JPMorgan further anticipates that, if the acquisition goes through, AbbVie will conduct a broad range of studies on this drug and leverage its historically strong presence in immunology to bring the product to market.
The bank noted that the potential takeover of Apogee would be positively received by AbbVie’s investors, as it fills the gap in the company’s relatively sparse late-stage drug pipeline—a major concern for investors in recent quarters.
According to JPMorgan, Apogee’s zumilokibart could effectively compete with Dupixent, the current leader among anti-inflammatory treatments, offering comparable efficacy while requiring less frequent dosing.
Dupixent is jointly owned by Sanofi and Regeneron Pharma.
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