AbbVie (ABBV) Strengthens Pays $700M to Strengthen Oncology Portfolio with ISB 2001

AbbVie Inc. (NYSE:ABBV) is one of Goldman Sachs’ top healthcare stock picks. On July 10, the stock jumped 3.4% on the confirmation of an exclusive licensing deal with IGI Therapeutics. The agreement is for lead asset ISB 2001, which targets oncology and autoimmune diseases.

Under the terms of the agreement, AbbVie has secured rights to develop, manufacture, and commercialize the treatment option across North America, Europe, Japan, and Greater China. In return, the company is to pay $700 million to IGI Therapeutics to secure the rights.

“Multispecifics including trispecific antibodies represent a new frontier in immuno-oncology with the potential to deliver deeper, more durable responses by engaging multiple targets simultaneously,” said Roopal Thakkar, M.D., executive vice president of research and development and chief scientific officer at AbbVie.

While the company will also incur milestone payments totaling $1.225 billion, the acquisition is poised to bolster its pipeline of drugs. The acquisition of ISB 2001 rights paves the way for AbbVie to expand and strengthen its oncology portfolio. The asset has the potential to address unmet needs in the treatment of multiple myeloma.

AbbVie Inc. (NYSE:ABBV) is a biopharmaceutical company dedicated to discovering, developing, and commercializing innovative medicines and solutions that address complex health issues. It advances therapies in areas of immunology, oncology, neuroscience, and virology.

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Disclosure: None. This article is originally published at Insider Monkey.