AbbVie (ABBV) has agreed to acquire the lead drug program from Gilgamesh Pharmaceuticals for up to $1.2 billion. The deal centers on bretisilocin, an experimental therapy now in Phase 2 trials for major depressive disorder. The payment includes an upfront sum along with milestone-based payouts tied to development progress.
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Bretisilocin is part of a new wave of psychedelic-based treatments that act on the serotonin system in the brain. It targets the 5-HT2A receptor and is designed to shorten the duration of the psychoactive experience while preserving long-term benefits. This feature matters because traditional psychedelic therapies often require long sessions and close supervision.
Recent Phase 2a results suggest strong potential. In the study, patients given a single 10-mg dose saw a 21.6-point drop in depression scores after 14 days, compared with 12.1 points for a low-dose group. No serious side effects were reported. Analysts note that this profile could help Bretisilocin stand out in a growing mental health treatment market.
AbbVie Rebuilds Pipeline Amid Growing Psychedelic Market
As part of the transaction, Gilgamesh will spin out a new company named Gilgamesh Pharma. This entity will retain other research programs, including an oral NMDA receptor blocker and projects focused on brain targets. It will also take over the existing collaboration with AbbVie.
The acquisition comes as AbbVie works to recover from a major setback in 2024, when its schizophrenia drug emraclidine failed in key trials. That failure cut about $40 billion from AbbVie’s market value. Now, the company is turning toward psychedelic-based options to strengthen its neuroscience pipeline.
Meanwhile, interest in psychedelic therapies is growing across the industry. Johnson & Johnson (JNJ) has seen sales rise after its ketamine-based drug Spravato became the first psychedelic-linked treatment approved by the FDA earlier this year. Industry forecasts suggest this market could climb from around $3 billion in 2024 to more than $8 billion by 2032.
The AbbVie-Gilgamesh deal still needs regulatory approval and is subject to standard closing conditions. If completed, it would allow AbbVie to move bretisilocin into late-stage trials and position the company in a space gaining traction with both physicians and investors.
What Is ABBV’s Stock Price Target?
On the Street, AbbVie scores a Moderate Buy consensus, based on 19 analysts’ ratings. The average ABBV stock price target stands at $221.19, implying a 6.16% upside from the current price.
