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AbbVie Inks a Deal With Neomorph for Molecular Glue Degraders

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AbbVie (ABBV - Free Report) announced that it has entered into a collaboration and option-to-license agreement with the San Diego-based private biotech Neomorph to develop molecular glue degraders for multiple targets across oncology and immunology.

Molecule glue degraders are a novel class of small molecules designed to selectively degrade proteins that drive disease. AbbVie will utilize Neomorph’s proprietary discovery platform to target proteins that are considered ‘undruggable’.

Per the terms of the deal, Neomorph will receive an undisclosed amount as an upfront payment from AbbVie. The San Diego company will also be eligible to receive up to $1.64 billion in aggregate option fees and milestones, along with tiered royalties based on net sales.

Founded in 2020, Neomorph has been garnering interest from big pharma for its discovery platform. Last year, it signed separate multi-billion dollar partnerships with big-wigs Biogen (BIIB - Free Report) and Novo Nordisk (NVO - Free Report) . While the NVO deal (worth $1.46 billion) targets cardiometabolic and rare diseases, the $1.45 billion deal with BIIB focuses on immunology and neurology, including Alzheimer's disease.

ABBV Stock Performance

In the past year, shares of AbbVie have gained 4% against the industry’s 4% decline.

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AbbVie Continues Acquisition Spree

AbbVie has been on an acquisition spree in the past couple of years, strengthening its pipeline. It has signed several M&A deals in the immunology space, its core area, and some early-stage deals in oncology and neuroscience areas.

Last year, ABBV acquired smaller biotechs like Landos Biopharma and Celsius Therapeutics that make novel drugs for treating inflammatory bowel disease (IBD), which has become quite a popular space of late. It also signed a license agreement with China’s FutureGen to develop a next-generation anti-TL1A antibody for IBD.

Earlier this week, ABBV completed the acquisition of immunology drugmaker Nimble Therapeutics. With this acquisition, it added Nimble’s innovative oral peptide-based therapies, including a novel IL23R inhibitor (also the lead asset) currently in preclinical development, for the treatment of psoriasis.

Last week, ABBV signed an option-to-license agreement with Hong Kong-based Simcere to develop a novel trispecific antibody candidate in multiple myeloma indication.

Among some other recent deals, the company acquired private neuroscience drugmaker biotech Aliada Therapeutics, signed a collaboration and licensing agreement with EvolveImmune Therapeutics to develop next-generation cancer biotherapeutics and expanded its existing neuroscience collaboration with Gedeon Richter.

ABBV’s Zacks Rank

AbbVie currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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