AbbVie (NYSE:ABBV) is set to acquire ImmunoGen in a deal valued at approximately $10.1 billion, aiming to accelerate its entry into the ovarian cancer treatment market. The acquisition includes ImmunoGen’s development of the ovarian cancer drug Elahere, seen by AbbVie as a potential multibillion-dollar revenue generator in the future.
Richard Gonzalez, AbbVie’s Chairman and CEO, emphasized the company’s commitment to its long-term growth strategy through the acquisition, enabling diversification of its oncology pipeline across both solid tumors and hematologic malignancies.
Under the terms of the deal, AbbVie will pay $31.26 per share in cash for each ImmunoGen share. The transaction has received approval from the boards of both companies and is anticipated to be finalized in mid-2024, pending approval from ImmunoGen shareholders and regulatory authorities.
Elahere received accelerated approval from U.S. regulators in 2022, with ongoing efforts by ImmunoGen to secure full approval from the Food and Drug Administration and expand its presence in other markets.
In the third quarter of this year, Elahere contributed $105.2 million in revenue, representing a significant portion of ImmunoGen’s total sales. AbbVie’s move to acquire ImmunoGen comes amidst increased competition for its leading product, the autoimmune disease treatment Humira, which generated $21 billion in total revenue last year, constituting around 36% of AbbVie’s overall revenue.
Following the announcement, ImmunoGen’s shares surged by over 82%, while AbbVie’s stock experienced a slight decline.
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Author Stephanie Bédard-Châteauneuf 
