AbbVie Completes Acquisition of Landos Biopharma
AbbVie has completed its acquisition of Landos Biopharma, enhancing its portfolio with NX-13, a first-in-class oral NLRX1 agonist currently in Phase 2 trials for treating ulcerative colitis (UC) and Crohn's disease (CD). The acquisition, priced at $20.42 per share plus up to $11.14 per share upon achieving a clinical milestone, aims to offer a novel, dual-action treatment approach to inflammatory bowel disease (IBD), combining anti-inflammatory properties and epithelial repair. Landos' stock will stop trading on NASDAQ from May 24, 2024. AbbVie expressed its commitment to transforming the standard of care for IBD patients.
- Addition of NX-13 to AbbVie's pipeline offers a potential novel treatment for UC and CD.
- NX-13 is in Phase 2 clinical trials, indicating advanced development.
- Dual mechanism of action: anti-inflammatory and epithelial repair.
- Acquisition price of $20.42 per share shows strong financial commitment.
- Potential additional value of up to $11.14 per share contingent on clinical milestones.
- Acquisition strengthens AbbVie's portfolio in immunology.
- Landos' common stock will cease trading on NASDAQ, potentially affecting current shareholders.
- The value of contingent shares is uncertain and depends on clinical success.
- No immediate revenue generation from NX-13 as it is still in Phase 2 trials.
Insights
The acquisition of Landos Biopharma by AbbVie brings NX-13, a first-in-class oral NLRX1 agonist, into AbbVie's pipeline. The significance of NX-13 lies in its unique dual mechanism of action, being both anti-inflammatory and facilitating epithelial repair. This is particularly relevant for the treatment of moderate to severe Ulcerative Colitis (UC) and Crohn's Disease (CD), which are chronic and often debilitating conditions. The potential benefits of NX-13 include better management of symptoms and possibly a higher rate of remission, which are important for improving patients' quality of life. However, its current Phase 2 status indicates that it is still in the intermediary stage of clinical trials. The successful completion of subsequent phases and obtaining FDA approval will be critical for its market launch.
In simple terms, NX-13 could be a game-changer if it proves effective through ongoing and future clinical trials. For retail investors, this means there is a medium-to-long-term horizon before seeing any substantial revenue contributions from this acquisition. Therefore, continuous updates on clinical trial progress will be key indicators to watch.
From a financial perspective, AbbVie's acquisition of Landos Biopharma at a price of
Critically, the acquisition price suggests that AbbVie sees substantial long-term value in NX-13, potentially projecting significant future revenue streams pending successful trials and regulatory approval.
Looking at the market implications, the inclusion of NX-13 into AbbVie’s product line strengthens their position in the competitive immunology sector. The potential success of NX-13 could distinguish AbbVie as a leader in innovative treatments for inflammatory bowel diseases (IBD). For investors, this means that the company is not just relying on its existing products but is actively seeking novel therapies to address unmet medical needs, which can drive long-term growth. However, it's also important to recognize that the IBD treatment market is crowded and AbbVie will need robust clinical data to differentiate NX-13 from existing therapies.
This acquisition aligns with broader industry trends where major pharmaceutical companies are investing in novel biotechnological solutions to address complex diseases. Thus, understanding the competitive landscape and keeping track of NX-13's clinical data will be important for evaluating the true impact of this acquisition.
- Adds first-in-class investigational asset, NX-13, to AbbVie's pipeline with the potential to offer a novel approach to the treatment of ulcerative colitis (UC) and Crohn's disease (CD)
Landos' lead investigational asset is NX-13, a first-in-class, oral NLRX1 agonist (a member of the NOD-like receptor family), which is currently in Phase 2 for the treatment of moderate to severe UC (NEXUS study; NCT05785715). NLRX1 regulates immunometabolism and inflammation, and its activation may address inflammatory bowel disease (IBD) pathogenesis. With a dual mechanism of action that is anti-inflammatory and facilitates epithelial repair, NX-13 has the potential to offer a novel approach to the treatment of UC and CD.
"Many people living with IBD are not able to achieve or maintain remission and continue to experience debilitating symptoms," said Kori Wallace, M.D., Ph.D., vice president, global head of immunology clinical development, AbbVie. "The addition of NX-13 complements our portfolio in immunology and strengthens our collective efforts to transform standard of care. I want to commend the Landos team for their efforts in advancing our shared mission of developing medicines for those who need it most."
For additional background on the acquisition, please read the announcement press release here.
Financial Terms
AbbVie has acquired Landos at a price of
About the NEXUS Study
NEXUS is a Phase 2 proof-of-concept clinical trial evaluating NX-13 in patients with moderate to severe UC. NEXUS is a randomized, multicenter, double-blind, placebo-controlled, multiple dose, 12-week induction study evaluating 80 patients with moderate to severe UC with a long-term extension (LTE) period. All subjects will be randomized to receive either 250 mg or 750 mg immediate release NX-13, or placebo. The primary objective of the trial will be to evaluate clinical efficacy, safety and pharmacokinetics of oral NX-13 versus placebo (NCT05785715 ClinicalTrials.gov).
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.
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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