AbbVie has announced that it will buy drug developer Landos Biopharma in a deal worth up to $212 million. The deal will expand Abbvie’s portfolio, especially in the arena of immune system-related illnesses.
Under the terms of the agreement, AbbVie will buy Landos for $20.42 per share in cash, approximately $137.5 million. In addition, AbbVie has also agreed to pay Landos shareholders up to $11.14 per share, or around $75 million in total, contingent on certain clinical development milestones.
The $20.42 share price in the agreement represents a premium of 161% over the share price of $7.83 at Friday's close of trading.
AbbVie will be acquiring Landos’ NX-13, an anti-inflammatory phase II candidate for ulcerative colitis and Crohn’s disease. Landos is currently recruiting for an ulcerative colitis trial for NX-13 in the U.S. and European Union.
AbbVie’s Rinvoq has already been approved by the U.S. Food and Drug Administration (FDA) to treat ulcerative colitis; the firm is also seeking FDA approval for the condition for Skyrizi, another key drug in its portfolio.
In a statement, the firms said that they anticipate the deal to close in the second quarter.
