Immunogen shares surge on news of takeover by AbbVie
AbbVie (NYSE:ABBV) announced Thursday that it will acquire Immunogen (IMGN) and its flagship cancer therapy, Elahere, in a deal worth $31.26 per share.
The transaction values ImmunoGen (NASDAQ:IMGN) at a total equity value of approximately $10.1 billion and is expected to close in the middle of 2024.
Elahere is considered a «first-in-class antibody-drug conjugate (ADC) approved for platinum-resistant ovarian cancer (PROC).» ABBV believes the deal accelerates its commercial and clinical presence in the solid tumor space.
«The acquisition of ImmunoGen demonstrates our commitment to deliver on our long-term growth strategy and enables AbbVie to further diversify our oncology pipeline across solid tumors and hematologic malignancies,» said Richard Gonzalez, chairman and chief executive officer of AbbVie. «Together, AbbVie and ImmunoGen have the potential to transform the standard of care for people living with cancer.»
ImmunoGen shares have rocketed 83% to over $29 per share on the news.
Reacting to the report, analysts at BMP Capital said they view today's news as a positive for their SMID cap coverage, particularly names with important 2024 de-risking events. Furthermore, BMO said the proposed transaction is expected to be accretive to diluted earnings per share (EPS) for AbbVie beginning in 2027.
«We see the deal as a positive for biotech as it reflects our view that quality oncology assets are of high interest to large pharma and merit a premium,» added the analysts.
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