Biopharmaceutical giant AbbVie (NYSE: ABBV) has agreed to acquire ImmunoGen (NASDAQ: IMGN) in a blockbuster deal worth $10.1 billion, sending IMGN stock skyrocketing.
Under the terms of the sale agreement, AbbVie will purchase all outstanding shares of ImmunoGen at a rate of $31.26 per share, representing a 94% premium over its previous closing price.
This acquisition will grant AbbVie access to ImmunoGen’s Elahere, a revolutionary cancer treatment approved for ovarian cancer patients. Elahere belongs to a new class of cancer drugs known as antibody-drug conjugates (ADCs), comprising a monoclonal antibody that precisely targets cancer cells and reduces the toxicity of other cells.
The deal also includes ImmunoGen’s promising pipeline of ADCs, featuring candidates such as IMGN-151 for early-stage ovarian cancer and pivekimab sunirine for a rare type of blood cancer.
The transaction, pending approval from IMGN stockholders and regulatory bodies, is expected to close in mid-2024. AbbVie (NYSE: ABBV) expects the transaction to become accretive to its diluted earnings per share starting in 2027.
The market has responded positively to the news, with ImmunoGen stock surging 82% to hit a 23-year high of $29.34 in early afternoon trading. Shares of ImmunoGen (NASDAQ: IMGN) increased more than threefold this year after the company announced in May that Elahere had proven effective in extending patients’ lives during a late-stage trial.
