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Check tubes are seen in entrance of a displayed AbbVie emblem on this illustration taken on Might 21, 2021.
Dado Ruvic | Reuters
Biotech shares rose Thursday as AbbVie introduced plans to purchase most cancers drug developer ImmunoGen for $10.1 billion.
Shares of ImmunoGen closed practically 83% greater Thursday, whereas AbbVie’s inventory closed virtually 3% greater.
ImmunoGen develops most cancers medicine known as antibody-drug conjugates, or ADCs, that are designed to straight kill most cancers cells and spare wholesome ones. Shares of different biotech corporations creating ADCs, that are among the many hottest areas within the pharmaceutical business, jumped on the information of the buyout.
That features Sutro Biopharma‘s inventory, which closed practically 13% greater Thursday and shares of Mersana Therapeutics, which closed up greater than 3%. Shares of ADC Therapeutics additionally closed 6% greater Thursday.
The SPDR S&P Biotech ETF, which focuses on small and midsize biotech corporations, closed up 2% Thursday. The Nasdaq Biotechnology Index closed greater than 1% greater.
Underneath the phrases of the deal, AbbVie pays $31.26 a share in money for ImmunoGen, a roughly 95% premium to Wednesday’s closing worth. AbbVie stated it expects to finish the acquisition, which goals to strengthen its oncology pipeline, in the midst of 2024.
Guggenheim analyst Michael Schmidt stated the value of the deal displays the “rising curiosity we now have seen from massive biopharma corporations wanting to extend their publicity” in ADCs, which he known as an “engaging space.”
For instance, Pfizer agreed to amass Seagen, a pioneer in ADCs, for $43 billion earlier this yr. Merck and Daiichi Sankyo additionally just lately agreed to collectively develop and commercialize three potential ADCs in a deal price as much as $22 billion.
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