- AbbVie is buying rival biotech firm ImmunoGen for $10.1 billion, giving it access to ImmunoGen’s flagship ovarian cancer treatment.
- The deal values ImmunoGen shares at $31.26, nearly double its closing price Wednesday.
- ImmunoGen shares soared to their highest level since 2000.
ImmunoGen (IMGN) shares skyrocketed over 80% in early trading Thursday after AbbVie (ABBV) agreed to buy the rival biotech firm for $10.1 billion to expand its cancer drug portfolio.
The agreement will have AbbVie pay $31.26 per share for ImmunoGen, a whopping 96% premium to the closing price yesterday. The transaction is expected to close in the middle of next year, and AbbVie noted that it expects the deal to be accretive to earnings per share (EPS) in 2027.
The acquisition gives AbbVie ImmunoGen’s flagship cancer medicine, Elahere, an antibody-drug conjugate (ADC) to treat platinum-resistant ovarian cancer (PROC). AbbVie noted the move accelerates its commercial and clinical presence in treatments for solid tumors. The agreement also provides access to ImmunoGen’s pipeline of next-generation ADCs.
The company explained that ovarian cancer is the leading cause of death from gynecological cancers in the U.S., and Elahere is the first targeted drug shown to boost survival rates for those with PROC.
CEO Richard Gomez said that the merger has “the potential to transform the standard of care for people living with cancer.”
The news sent shares of ImmunoGen to their highest level in 23 years. AbbVie shares were up as well.