AbbVie Inc. ABBV announced Thursday an agreement to buy cancer treatment developer ImmunoGen Inc. IMGN in a cash deal valued at $10.1 billion. Under terms of the agreement, AbbVie will pay $31.26 in cash for each ImmunoGen share outstanding, which represents a 94.6% premium to Wednesday’s closing price of $16.06. Immunogen’s stock was halted for news until 8 a.m. Eastern while AbbView shares slipped 0.4% in premarket trading. AbbVie said the deal includes ImmunoGen’s cancer therapy Elahere, which has been approved as a treatment for ovarian cancer. AbbVie said the deal, which is expected to close in the middle of 2024, is expected to add to earnings in 2027. “The acquisition of ImmunoGen demonstrates our commitment to deliver on our long-term growth strategy and enables AbbVie to further diversify our oncology pipeline across solid tumors and hematologic malignancies,” said AbbVie Chief Executive Richard Gonzalez. ImmunoGen’s stock has rocketed 223.8% year to date through Wednesday, while AbbVie shares have dropped 14.3% and the S&P 500 SPX has advanced 18.5%.
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