AbbVie has struck a deal to buy Apogee Therapeutics for $10.9 billion. The deal will give AbbVie control of a late-phase eczema drug candidate that could pose a threat to Eli Lilly, Regeneron and Sanofi.
Apogee’s lead candidate is zumilokibart, an anti-IL-13 antibody that has impressed analysts and investors in recent phase 2 updates. Cross-trial comparisons suggest the drug candidate can match or improve on the efficacy of Lilly’s Ebglyss and Sanofi and Regeneron’s Dupixent—both of which hit IL-13—while reducing injection burden. Patients received zumilokibart every three or six months in the phase 2 trial.
The buyout “fits naturally” with AbbVie’s existing immunology and inflammation (I&I) product portfolio, BMO Capital Markets analysts said in a note to investors. AbbVie’s strength in I&I, where Skyrizi and Rinvoq are its key drugs, suggests the company has what it takes to realize zumilokibart’s potential.
“While investors have debated which long-acting atopic dermatitis competitors could show best sustained efficacy (many looking to Nektar as well), we see obvious synergies with AbbVie’s portfolio for zumilokibart if the company is able to ultimately … commercialize the product,” the analysts said.
Apogee confirmed zumilokibart’s status as a potential threat to Ebglyss and Dupixent in March, when the release of phase 2 data prompted Guggenheim Securities analysts to double their peak sales forecast to $5.2 billion.
The analysts reasserted their forecast last month after Apogee published induction data from the second part of its phase 2 trial. Guggenheim’s team compared the results to data on Rinvoq, noting that Apogee and AbbVie reported similar rates of full skin clearance and very low disease activity.
Skyrizi and Rinvoq are central to AbbVie’s business, generating about $26 billion between them last year. The products face threats on several fronts, with the approval of Johnson & Johnson’s oral psoriasis drug Icotyde and the expansion of the label for its injectable Tremfya among the events adding to pressures on AbbVie.
Wall Street is “increasingly concerned” about what developments in the competitive landscape mean for AbbVie’s I&I portfolio, J.P. Morgan analyst Chris Schott said on the company’s first-quarter earnings call in April. AbbVie CEO Robert Michael pointed to the company’s “very active” dealmaking as evidence that it can stay ahead of the competition.
The merits of the Apogee deal could become clearer in the coming years. Last month, Apogee said (PDF) it expected to publish one-year data from the second part of its phase 2 zumilokibart trial in the first half of 2027. Phase 3 data could follow in 2028. Phase 1b data on another drug candidate, which hits IL-13 and OX40L, are due this year. The phase 1b trial is comparing the asset, APG279, to Dupixent.
Apogee recently positioned itself to bring zumilokibart to market by securing up to $1.3 billion from Blackstone Life Sciences. However, AbbVie’s offer of $135.11 per share in cash persuaded the biotech to sell up. Apogee’s stock traded below $80 at the start of June and closed just above $90 on Thursday.
