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AbbVie's $10.9B All-Cash Acquisition of Apogee Therapeutics
At 11:54 · chapter starts 9:08
Sam Fazeli discusses AbbVie's bid for eczema drug developer Apogee, its $50B+ immunology revenue base, pharma's cash generation strength, and emerging frontiers in neuroscience and women's health. [1] — Sam Fazeli "The entire pharma world is chasing obesity drugs worth $100 billion. But AbbVie's two immunology drugs — Skyrizi and Rinvoq — are already a…" 10:08
AbbVie agreed to acquire Apogee Therapeutics for $10.9 billion in cash to expand its anti-inflammatory drug portfolio.
AbbVie's offer for Apogee Therapeutics represents a roughly 49% premium to Apogee's closing price of $90.38.
AbbVie already has the biggest immunology franchise in pharma with Skyrizi and Rinvoq heading toward $50B+ in combined revenue. Buying Apogee for $10.9 billion gives it a foothold in atopic dermatitis — a massive and underserved eczema market.
The entire pharma world is chasing obesity drugs worth $100 billion. But AbbVie's two immunology drugs — Skyrizi and Rinvoq — are already approaching $50 billion combined. Inflammation is a pharma goldmine that doesn't get nearly enough attention.
AbbVie's two drugs, Skyrizi and Rinvoq, are approaching well over $50 billion in combined revenue, rivaling the obesity drug market.
Big pharma runs at 30%+ operating margins across the board. Even Pfizer, whose stock has halved from pandemic peaks, generates enormous cash with low leverage. These are cash-rich companies, and large all-cash acquisitions are entirely within reach for almost all of them.
