AbbVie Acquires Celsius Therapeutics
AbbVie (NYSE: ABBV) announced the acquisition of Celsius Therapeutics, a biotechnology company focused on inflammatory diseases. This $250 million cash deal includes adjustments and aims to advance Celsius' leading investigational asset, CEL383, an anti-TREM1 antibody for treating inflammatory bowel disease (IBD). CEL383 has completed Phase 1 clinical trials and targets TREM1, a gene linked to inflammation in IBD. AbbVie believes CEL383 could help more IBD patients achieve remission, reflecting the company's commitment to expanding its immunology portfolio.
- AbbVie has acquired Celsius Therapeutics for $250 million, expanding its portfolio with CEL383, a promising IBD treatment.
- CEL383 has completed Phase 1 clinical trials, demonstrating potential for further development.
- The acquisition aligns with AbbVie’s strategy to enhance its immunology pipeline.
- The acquisition involves a $250 million cash expenditure, impacting AbbVie's immediate financials.
Insights
The acquisition of Celsius Therapeutics by AbbVie for
With CEL383 having completed Phase 1 clinical trials, the financial commitment demonstrates confidence in its potential to progress through further stages of clinical development. Investors should note, however, that late-stage clinical trials are costly and carry inherent risks of non-approval. Therefore, while this acquisition may promise long-term benefits, the short-term financial impact will depend on the outcomes of these trials and subsequent regulatory approvals.
CEL383 targets TREM1, a gene identified as a key driver in IBD. By focusing on this novel mechanism, there is an opportunity to address a significant unmet medical need within the IBD patient population. TREM1 is known to amplify inflammation in monocytes and neutrophils, offering a potentially more efficient way to mitigate inflammatory responses compared to existing therapies.
If successful, CEL383 could represent a groundbreaking advancement in IBD treatment by providing an entirely new therapeutic approach. This could potentially lead to improved remission rates and quality of life for patients. Nonetheless, the clinical pathway remains challenging, as Phase 2 and Phase 3 trials will need to establish not only safety but also superior efficacy over current standard-of-care treatments.
The IBD market is projected to grow significantly, driven by rising prevalence and better diagnostic methodologies. AbbVie's investment in Celsius' CEL383 aligns well with this market trajectory. By targeting a new pathway in the inflammatory process, AbbVie could potentially capture a significant share of this expanding market, provided CEL383 proves effective and receives regulatory approval.
Moreover, the acquisition could enhance AbbVie's competitive edge, as it positions the company to offer a broader portfolio of innovative treatments. However, investors should be cautious about the time frame and regulatory hurdles involved before CEL383 can be commercially viable. This acquisition also highlights AbbVie's commitment to innovation in its product pipeline, which is important for sustaining long-term growth in a competitive biopharmaceutical landscape.
- Celsius' CEL383 is a potential first-in-class anti-Triggering Receptor Expressed on Myeloid Cells 1 (TREM1) antibody for the treatment of inflammatory bowel disease (IBD)
TREM1 has been identified as a key disease driver gene in IBD, where it is expressed on inflammatory monocytes and neutrophils. In these cell types and others, TREM1 is upstream of multiple known inflammatory pathways and acts as an amplifier of inflammation.
"Given the potential relevance of TREM1 as a key driver of inflammation and pathology in IBD and other conditions, we are eager to advance the development of CEL383 with a goal of helping more patients with IBD achieve remission," said Kori Wallace, M.D., Ph.D., vice president, global head of immunology clinical development, AbbVie.
"AbbVie shares our excitement about the potential of TREM1 inhibition for patients with inflammatory disease," said Tariq Kassum, M.D., chief executive officer, Celsius. "I'd like to thank the Celsius team for their relentless efforts in the discovery of CEL383. We look forward to the further development of this promising program, which we hope will offer a new approach to the treatment of IBD."
Under the terms of the agreement, AbbVie has acquired all outstanding Celsius equity for
About CEL383
CEL383 is an investigational antibody directed towards TREM1. In preclinical assays, CEL383 has been shown to inhibit TREM1 signaling, reducing the levels of multiple inflammatory mediators of high clinical relevance in inflammatory conditions. A phase 1 first-in-human, randomized, double-blind, placebo-controlled, single ascending dose study evaluating the safety, tolerability and pharmacokinetics of CEL383 in healthy volunteers has concluded (NCT05901883).
Advisors
AbbVie's legal advisor was Covington & Burling LLP. Celsius' financial advisor was Centerview Partners LLC and Goodwin Procter LLP served as legal advisor.
About AbbVie
AbbVie's mission is to discover and deliver innovative medicines and solutions that solve serious health issues today and address the medical challenges of tomorrow. We strive to have a remarkable impact on people's lives across several key therapeutic areas – immunology, oncology, neuroscience, and eye care – and products and services in our Allergan Aesthetics portfolio. For more information about AbbVie, please visit us at www.abbvie.com. Follow @abbvie on LinkedIn, Facebook, Instagram, X (formerly Twitter), and YouTube.
About Celsius Therapeutics
Celsius Therapeutics is a clinical-stage biotechnology company developing novel medicines in inflammatory disease. The company's lead therapeutic candidate is an anti-TREM1 antibody for the treatment of IBD. Celsius is based in
Forward-Looking Statements
Some statements in this news release are, or may be considered, forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995. The words "believe," "expect," "anticipate," "project" and similar expressions and uses of future or conditional verbs, generally identify forward-looking statements. AbbVie cautions that these forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those expressed or implied in the forward-looking statements. Such risks and uncertainties include, but are not limited to, challenges to intellectual property, competition from other products, difficulties inherent in the research and development process, adverse litigation or government action, and changes to laws and regulations applicable to our industry. Additional information about the economic, competitive, governmental, technological and other factors that may affect AbbVie's operations is set forth in Item 1A, "Risk Factors," of AbbVie's 2023 Annual Report on Form 10-K, which has been filed with the Securities and Exchange Commission, as updated by its subsequent Quarterly Reports on Form 10-Q. Forward looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward looking statements, and AbbVie undertakes no obligation, and specifically declines, to release publicly any revisions to forward-looking statements as a result of subsequent events or developments, except as required by law.
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SOURCE AbbVie
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