AbbVie Inc. (Ticker: ABBV) has announced an agreement to acquire cancer treatment developer ImmunoGen Inc. (Ticker: IMGN) in a cash deal valued at $10.1 billion.
Deal Details
Under the terms of the agreement, AbbVie will pay $31.26 in cash for each outstanding share of ImmunoGen. This offer represents a significant 94.6% premium to Wednesday’s closing price of $16.06 per share. AbbVie’s shares slipped 0.4% in premarket trading after the news, while trading of ImmunoGen’s stock was halted until 8 a.m. Eastern.
The deal includes ImmunoGen’s highly regarded cancer therapy, Elahere, which has already received approval as a treatment for ovarian cancer. AbbVie expects the acquisition to be completed in the middle of 2024, with the transaction contributing to earnings by 2027.
Long-Term Growth Strategy
AbbVie’s Chief Executive, Richard Gonzalez, emphasized the importance of this acquisition in fulfilling the company’s long-term growth strategy. He stated, “The acquisition of ImmunoGen demonstrates our commitment to diversifying our oncology pipeline across solid tumors and hematologic malignancies.”
Impressive Year for ImmunoGen
ImmunoGen has experienced exceptional growth, with its stock skyrocketing by 223.8% year-to-date through Wednesday. In contrast, AbbVie shares have dipped by 14.3%, while the S&P 500 has advanced 18.5%.