AbbVie will pay around
But company leaders cautioned Thursday that a return on the deal they announced for drug developer ImmunoGen will take time to develop.
The company said it will pay
The deal delivers Elahere, an ImmunoGen ovarian cancer treatment that AbbVie says could eventually reap billions of dollars in annual sales and drive long-term revenue growth. But in the near term, AbbVie expects the deal to be dilutive to its earnings until 2027.
Elahere brought in
AbbVie said the acquisition will speed up its entry into the market for treating solid tumors. Company leaders told analysts Thursday that Elahere made up the “most substantial component” of the deal's value.
They expect sales of the treatment to grow, with a significant inflection starting early in the next decade.
AbbVie has been dealing this year with cheaper competition for its top seller, the autoimmune disease treatment Humira. The injectable biologic drug is used to treat rheumatoid arthritis, Crohn’s disease and ulcerative colitis.
Humira brought in
Humira also totaled more than
AbbVie and ImmunoGen said Thursday that the boards of both companies have approved the transaction. It's expected to close in the middle of 2024. It still needs approval from ImmunoGen shareholders and regulators.
Shares of
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