U.S.-based AbbVie Inc. (ABBV) is reportedly in discussions to buy clinical-stage biotech company Gilgamesh Pharmaceuticals. According to sources familiar with the matter, the deal could be valued at around $1 billion for Gilgamesh. While talks are ongoing, an official announcement might come in the next few weeks.
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AbbVie develops innovative therapies for complex health conditions. Meanwhile, Gilgamesh is a clinical-stage biotech firm working on treatments for psychiatric conditions such as depression, anxiety, and PTSD.
AbbVie Turns to M&A for Future Growth
The potential deal would bolster AbbVie’s pipeline of potential treatments for psychiatric disorders. Notably, Gilgamesh is developing neuroplastogens, a type of next-generation psychedelic compound.
Notably, AbbVie continues expanding into mental health treatments after its blockbuster arthritis drug Humira lost U.S. patent protection in 2023, triggering a sales decline. The company now focuses on expanding its drug portfolio, supported by newer therapies and smart acquisitions. According to Reuters, the company has spent more than $20 billion on acquisitions since 2023 to offset its declining sales.
Furthermore, the acquisition buzz comes more than a year after AbbVie and Gilgamesh entered into an option-to-license agreement to develop novel therapies for psychiatric disorders. As part of this partnership, AbbVie and Gilgamesh will jointly research and develop next-generation treatments for psychiatric disorders.
Separately, the company will release its second-quarter results for 2025 on Thursday, July 31. Analysts on Wall Street expect AbbVie to post earnings of $2.88 per share in its upcoming quarterly report, up from $2.65 reported in the same period last year.
Is AbbVie a Good Stock for 2025?
On TipRanks, ABBV stock has a consensus Moderate Buy rating among 15 Wall Street analysts. That rating is based on nine Buys and six Holds assigned in the last three months. The average AbbVie stock price target of $209.33 implies an 11% upside from current levels.
