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AbbVie and Neomorph Collaborate to Develop Innovative Cancer Therapies
NORTH CHICAGO, Ill. – AbbVie (NYSE: NYSE:), a major entity in the biotechnology sector with a market valuation of $299 billion, has partnered with Neomorph, Inc. to research and develop a new category of therapeutics known as molecular glue degraders. These compounds are aimed at targeting proteins associated with cancer and immune system disorders. AbbVie’s strong financial track record is evident, with 13 years of consistent dividend payouts, as noted by InvestingPro data. The alliance, revealed today, leverages AbbVie’s established expertise in oncology and immunology alongside Neomorph’s innovative molecular glue discovery platform.
Molecular glue degraders are a type of small molecule that specifically bind to certain proteins and promote their degradation, particularly those implicated in cancer progression and immune system irregularities. This innovative strategy aims to address proteins that have, until now, been deemed “undruggable.” The partnership has the potential to pave the way for revolutionary treatments targeting various immune disorders and types of cancer.
Steven Elmore, AbbVie’s vice president of small molecule therapeutics and platform technologies, expressed optimism regarding the collaboration and highlighted the transformative potential of protein degraders in the realm of drug discovery. Phil Chamberlain, Co-Founder, President, and CEO of Neomorph, underscored the company’s dedication to developing its molecular glue platform and the significant opportunity to tackle complex biological targets in conjunction with AbbVie.
As part of their agreement, Neomorph stands to receive an initial payment along with the possibility of earning up to $1.64 billion through future option fees and milestone payments, in addition to tiered royalties based on net sales of any resulting therapies.
Neomorph, established in 2020 and backed by Deerfield Management Company, has assembled a team globally recognized for its expertise in protein degradation and molecular glue technologies. The company’s goal is to spearhead the progress of molecular glue drug discovery initiatives, advancing projects into clinical development.
This partnership emerges from AbbVie’s mission to innovate in medicine, coupled with Neomorph’s unique capabilities to create impactful treatments. AbbVie has demonstrated impressive market strength, boasting annual revenues of $55.5 billion alongside a gross profit margin of 70%. Investors seeking a detailed examination of AbbVie’s performance can find in-depth analysis in the extensive Pro Research Report available on InvestingPro, covering over 1,400 leading U.S. stocks, including AbbVie.
In related news, AbbVie has actively pursued various strategic initiatives and collaborations. Recently, Guggenheim Securities revised its financial outlook for AbbVie, decreasing the price target to $212 while maintaining a Buy rating, forecasting continued growth driven mainly by the success of its drugs, Skyrizi and Rinvoq. In contrast, BMO Capital Markets has kept an Outperform rating for AbbVie shares, emphasizing the potential of the immunology and inflammation product line to grow in 2025.
Furthermore, AbbVie and REGENXBIO are making strides in developing a gene therapy—ABBV-RGX-314—to address two significant eye conditions. They are preparing to initiate a Phase 3 clinical program targeting diabetic retinopathy while anticipating key trial results for wet age-related macular degeneration by 2026. AbbVie is also expanding its collaboration with AbCellera, focusing on the development of T-cell engagers aimed at oncology therapies.
Additionally, AbbVie has modified its earnings projection for the fourth quarter of 2024, largely due to escalating research and development expenses, adjusting the forecast down by $0.88 per share. The company now anticipates its full-year 2024 adjusted diluted earnings per share to fall between $10.02 and $10.06. AbbVie is also set to record a significant non-cash after-tax impairment charge of about $3.5 billion related to the emraclidine asset, following disappointing trial results for the drug aimed at treating schizophrenia and Alzheimer’s disease.
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