Healthcare major AbbVie (NYSE:ABBV) has acquired discovery-stage biotech Mitokinin by exercising its exclusive right. Mitokinin’s lead candidate is being developed for the treatment of Parkinson’s disease.
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Under the deal, Mitokinin shareholders will receive $110 million upon closing of the transaction. Additionally, aside from royalties on net sales, they will be eligible for additional payments of up to $545 million contingent upon certain development and commercial milestones associated with the company’s PINK1 program in Parkinson’s disease.
PINK1 is a key factor in maintaining a healthy mitochondrial system. Mitokinin’s lead candidate is a selective PINK1 activator and is designed to mitigate mitochondrial dysfunction associated with Parkinson’s disease. Importantly, mutations in PINK1 are related to loss of PINK1 function and lead to familial forms of Parkinson’s disease.
This acquisition bolsters AbbVie’s neuroscience portfolio and provides the company with a potential new treatment option for Parkinson’s disease. For Mitokinin, the transaction means the availability of substantial resources to drive its clinical program to investigational new drug-enabling studies.
What is the Target Price for ABBV?
Overall, the Street has a consensus price target of $169.50 on ABBV, alongside a Moderate Buy consensus rating. This implies a 15% potential upside in the stock.
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