AbbVie sharpens immunology focus with $10.9 billion Apogee deal

By Padmanabhan Ananthan

June 22 (Reuters) - AbbVie said on Monday it would buy Apogee Therapeutics for $10.9 billion, the company's largest buyout in more than five years, as it seeks to bolster its treatment pipeline for inflammatory diseases like atopic dermatitis and asthma.

The acquisition, one of the largest biotech deals of the year, underscores the surge in pharmaceutical dealmaking, as companies race to build their portfolios ahead of looming patent expirations on blockbuster treatments.

AbbVie has bet on acquisitions to counter declining demand for former top-selling drug Humira following biosimilar competition while bracing for patent expirations of immunology blockbusters Skyrizi and Rinvoq.

Recent deals include the $10.1 billion ImmunoGen deal for ovarian cancer drug Elahere and Cerevel Therapeutics for a clutch of experimental treatments for neurological and psychiatric diseases.

The Apogee acquisition grants AbbVie access to its lead drug candidate, zumilokibart, an experimental treatment targeting a range of inflammatory diseases. If approved, the therapy could expand AbbVie's position in immunology, its largest business and a key driver of future growth.

AbbVie's immunology franchise generated more than $30 billion in revenue in 2025, up 14% from the previous year, as strong growth in Skyrizi and Rinvoq made up for a 49% drop in sales of Humira.

AbbVie CEO Robert Michael called the acquisition an "excellent fit" with the company's strategy and said Apogee's pipeline had the potential to achieve "mega-blockbuster" peak sales, which the company defines as more than $10 billion in annual sales.

AbbVie has offered $135.11 per Apogee share held, which implies a 49.49% premium to the stock's Thursday close. AbbVie said it will fund the deal through debt.

Shares of Waltham, Massachusetts-headquartered Apogee were up 50% in early trading, while AbbVie was up 4.6%.

J.P. Morgan analyst Chris Schott said the deal is likely to be well-received by investors, who have been looking for more late-stage growth assets.

Analysts said zumilokibart could offer a potentially more convenient option to Sanofi and Regeneron's blockbuster Dupixent.

Unlike Dupixent, which is typically administered every two weeks in atopic dermatitis, zumilokibart is being studied as a subcutaneous injection given once every three or six months, likely offering a substantial reduction in dosing frequency.

"We believe the deal makes sense and that AbbVie is an ideal acquirer to maximize zumilokibart's potential," RBC Capital Markets analyst Brian Abrahams said.

The transaction is expected to close in the third quarter and add to adjusted earnings per share in 2032, AbbVie said.

(Reporting by Padmanabhan Ananthan in Bengaluru; Editing by Sriraj Kalluvila)