NORTH CHICAGO, Ill. - AbbVie (NYSE: NYSE:ABBV) announced Thursday that it has finalized the acquisition of Landos Biopharma, Inc. (NASDAQ: LABP), integrating a promising investigational drug, NX-13, into its portfolio. This drug is currently in Phase 2 clinical trials and is being studied as a potential treatment for moderate to severe ulcerative colitis (UC) and Crohn's disease (CD).
The acquisition deal was settled at $20.42 per share, along with a non-tradable contingent value right per share that could be worth up to $11.14, contingent on reaching a clinical milestone. Following this transaction, Landos' common stock will no longer be listed on the NASDAQ as of May 24, 2024.
NX-13 is a novel oral NLRX1 agonist, which is believed to play a role in regulating immunometabolism and inflammation, two key factors in IBD pathogenesis. The drug's dual action not only reduces inflammation but also promotes epithelial repair, which could lead to a new approach in treating UC and CD.
Kori Wallace, M.D., Ph.D., vice president and global head of immunology clinical development at AbbVie, highlighted the unmet need for effective treatments among IBD patients, many of whom struggle to achieve or maintain remission. Dr. Wallace praised the Landos team for their dedication to advancing a shared mission of developing essential medicines.
The NEXUS study is a Phase 2 trial designed to evaluate the efficacy, safety, and pharmacokinetics of NX-13 compared to a placebo in patients with moderate to severe UC. This 12-week induction study includes a long-term extension period and involves 80 patients randomized to receive varying doses of NX-13 or a placebo.
AbbVie is a global biopharmaceutical company with a focus on developing innovative medicines and solutions across several key therapeutic areas, including immunology, oncology, neuroscience, eye care, and the Allergan (NYSE:AGN) Aesthetics portfolio.
This news release contains forward-looking statements regarding the acquisition and the potential impact of NX-13 on IBD treatment, which are subject to risks and uncertainties that could cause actual results to differ materially from what is anticipated. These statements are based on the company's expectations and assumptions as of the date of this press release.
InvestingPro Insights
As AbbVie (NYSE: ABBV) continues to expand its portfolio with the acquisition of Landos Biopharma and the promising NX-13, the company's financial health and market performance remain crucial for investors. According to recent data from InvestingPro, AbbVie boasts a substantial market capitalization of $279.52 billion, reflecting its significant presence in the biopharmaceutical industry.
Despite a slight decrease in revenue growth by -4.12% over the last twelve months as of Q1 2024, the company maintains a robust gross profit margin of 69.17%, underscoring its financial resilience and operational efficiency.
Investors may also take note of AbbVie's P/E ratio, which stands at a high of 47.13, suggesting a premium valuation compared to industry peers. Still, when adjusted for the last twelve months as of Q1 2024, the P/E ratio appears more favorable at 21.3. This adjustment indicates that the company's earnings may support a more reasonable valuation over a longer-term perspective.
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