AbbVie (ABBV.N), opens new tab will buy an experimental depression drug from partner Gilgamesh Pharmaceuticals for up to $1.2 billion, the companies said on Monday, seeking to access a fast-growing market for psychedelic-based treatments.<\/p>\n
The deal is the latest in the more than $20 billion AbbVie has spent on acquisitions since 2023 for drugs that can drive growth as its flagship rheumatoid arthritis treatment, Humira, lost patent protection.<\/p>\n
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\nThe companies had signed a partnership last year to develop therapies for psychiatric disorders, with privately held Gilgamesh set to receive up to $1.95 billion in option fees and milestone payments.<\/p>\n
The deals with Gilgamesh, which is also developing treatments for anxiety and post-traumatic stress disorder, also launch AbbVie into the race to develop psychedelic compounds for psychiatric conditions – a potential $50 billion market, according to Cantor Fitzgerald analyst Josh Schimmer.<\/p>\n
Earlier this year, Johnson & Johnson’s (JNJ.N), opens new tab ketamine-derived Spravato became the first psychedelic-based standalone treatment for patients with severe depression to be approved by the U.S. Food and Drug Administration.<\/p>\n
Compass Pathways (CMPS.O), opens new tab, Atai Life Sciences (9VC.DE), opens new tab, Cybin (CYBN.NLB), opens new tab and MindMed (MNMD.O), opens new tab are some others developing psychedelic-based treatments for psychiatric conditions.<\/p>\n
“Large Pharma has been less active exploring psychedelic compounds due to potential regulatory concerns … making today’s deal more significant,” said BMO Capital Markets analyst Evan Seigerman. The deal value appearing discounted could reflect the concerns, he said.<\/p>\n
The deal, which includes an upfront payment and development milestones, could also bolster AbbVie’s neurological conditions portfolio after its experimental schizophrenia drug, which it gained access to through an $8.7 billion purchase of Cerevel Therapeutics, failed in two mid-stage studies last year.<\/p>\n
Gilgamesh’s lead candidate for depression, bretisilocin, activates the 5-HT2A serotonin receptor \u2014 also targeted by classic psychedelics such as psilocybin, found in magic mushrooms, and LSD.<\/p>\n
The companies said bretisilocin has been shown to exert a shorter duration of psychoactive experience while retaining an extended therapeutic benefit in early and mid-stage studies.
\nAbbVie will advance the drug into late-stage studies.<\/p>\n","protected":false},"excerpt":{"rendered":"
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