AbbVie to bolster immunity illness drug pipeline with Landos deal (updated)

Landos Biopharma

25/03/2024 13:03

(Adds shares in paragraph 5, details and background throughout)
       March 25 (Reuters) - AbbVie  ABBV.N  will buy drug
developer Landos Biopharma  LABP.O  for up to $212 million as
the Humira-maker aims to expand its pipeline of medicines to
treat immune system-related illnesses, the companies said on
Monday.
    Landos is currently conducting a mid-stage study of its lead
experimental drug NX-13 in a type of an inflammatory bowel
disease called ulcerative colitis.
    AbbVie's blockbuster drug Rinvoq is approved to treat the
disease while the company has also sought the U.S. Food and Drug
Administration's approval for its other key drug Skyrizi.
    Under the deal, AbbVie will buy Landos for $20.42 per share
in cash, or about $137.5 million in total. The offer marks a
161% premium to Friday's close of $7.83.
    Landos' shares surged to $22.13 before the bell after a
short trading halt.
    AbbVie has also agreed to pay Landos shareholders an
additional up to $11.14 per share, or around $75 million in
total, contingent on certain clinical development milestones.
    The deal is expected to close in the second quarter, the
companies said.
    

 (Reporting by Leroy Leo in Bengaluru; Editing by Sriraj
Kalluvila)
 ((Leroy.Dsouza@thomsonreuters.com ; https://twitter.com/LeroyLeo7;))