Biopharmaceutical company AbbVie, Inc. (NYSE: ABBV) revealed that it has concluded the buyout of Syndesi Therapeutics SA, a Belgium-based biotech company, to bolster its neuroscience portfolio.
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As per the agreed terms, AbbVie will pay shareholders of Syndesi an upfront payment of $130 million. The shareholders can receive additional contingent payments of $870 million upon the achievement of certain predetermined milestones.
With this deal, AbbVie will be able to access Syndesi’s portfolio of novel modulators of the synaptic vesicle protein 2A (SV2A), including its lead molecule SDI-118. Notably, this mechanism is being tested for treating cognitive impairment and other symptoms associated with a range of neuropsychiatric and neurodegenerative disorders, such as Alzheimer’s disease.
Executive Comments
The Senior Vice-President, R&D, Chief Scientific Officer at AbbVie, Tom Hudson, M.D., said, “There is a major unmet need for new therapies that can help improve cognitive function in patients suffering from difficult-to-treat neurologic diseases. With AbbVie’s acquisition of Syndesi, we aim to advance the research of a novel, first-in-class asset for the potential treatment of cognitive impairment associated with neuropsychiatric and neurodegenerative disorders.”
“We have been impressed with the vision of AbbVie’s neuroscience R&D team, who share our view on the therapeutic potential of SDI-118 in a range of neurologic diseases… Now, as part of AbbVie, the program is well positioned to move into later stages of clinical development,” said, Jonathan Savidge, the CEO of Syndesi.
Price Target
Recently, Citigroup analyst Andrew Baum reiterated a Buy rating on AbbVie and raised the price target to $170 from $155. The new price target implies 15.1% upside potential from current level.
Based on 13 Buys and 5 Holds, the stock has a Moderate Buy consensus rating. The average AbbVie price target of $150.88 implies 2.2% upside potential from current levels. Shares have gained 43.3% over the past year.
Bloggers Weigh In
TipRanks data shows that financial blogger opinions are 98% Bullish on ABBV, compared to a sector average of 68%.
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