Biopharmaceutical company AbbVie (NYSE: ABBV) recently revealed that it has signed an agreement with Gedeon Richter Plc., a Hungarian pharmaceutical and biotechnology company, to research, develop and commercialize novel dopamine receptor modulators for the potential treatment of neuropsychiatric diseases. The deal is likely to close in the second quarter of 2022.
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Following the news, shares of the company almost remained static and closed at $149.10 in Friday’s extended trading session.
The partnership is based on the results of preclinical research carried out by Richter and includes several new chemical entities selected for development.
Under the terms of the agreement, the partnership will include both preclinical and clinical R&D activities with shared financing among the parties and Richter receiving an upfront cash payment and additional payments upon the achievement of certain milestones.
Management Commentary
The Senior Vice-President, R&D at AbbVie, Tom Hudson, MD, said, “In collaboration with Richter, we will continue to build on our research that seeks to provide additional insights into our understanding of cariprazine’s clinical pharmacology and explore novel chemistry to identify new dopamine receptor modulators. AbbVie is committed to driving progress and finding solutions for patients living with complex neuropsychiatric conditions.”
Price Target
Recently, BMO Capital analyst Gary Nachman reiterated a Buy rating on the stock with a price target of $161, which implies upside potential of 8% from current levels.
The Wall Street community is cautiously optimistic about the stock and has a Moderate Buy consensus rating based on 11 Buys and 5 Holds. The average AbbVie price target of $149.93 implies that the stock has marginal upside potential from current levels. Shares have gained 35.2% over the past year.
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