AbbVie will acquire a psoriasis drug developer for $11 billion. Its stock rose 47%.

Biotechnology company Apogee Therapeutics saw its stock price rise by more than 47% during trading on June 22—after pharmaceutical giant AbbVie announced it would acquire the company for $10.9 billion. The deal will allow AbbVie, owner of Botox, to acquire a promising dermatitis drug that competes with a drug being developed by Sanofi.

AbbVie will acquire Apogee Therapeutics for $10.9 billion in cash, the company announced. The offer represents a premium of approximately 49% over the company’s closing share price on Thursday, June 18 (the last trading day before the U.S. holiday weekend). Apogee’s shares rose 47.1% in trading on June 22, while AbbVie’s shares gained about 7%.

The acquisition of Apogee will be AbbVie's largest deal since its 2019 acquisition of Allergan, the creator of Botox, according to Bloomberg. The deal is expected to close in the third quarter of 2026.

Apogee’s main asset is the experimental drug zumilokibart, which is currently being tested for the treatment of atopic dermatitis. The appeal of the deal lies in the drug’s potential, its convenient dosing regimen, and the possibility of using it in combination with Rinvoq, a drug from AbbVie’s portfolio, according to Barclays analyst Emily Field, as quoted by Bloomberg. “The deal is strategically aligned with AbbVie’s focus on developing a next-generation immunology business,” Field said.

AbbVie CEO Rob Michael said that Apogee's pipeline has the potential to become "mega-blockbusters" and complements the company's existing portfolio well.

Zumilokibart is a potential competitor to Sanofi’s Dupixent. The drug works differently, remains in the body longer, and requires less frequent injections compared to Dupixent, according to Bloomberg, citing Apogee CEO Michael Henderson. TD Cowen analyst Tyler Van Buren believes that Apogee’s drug could outperform Dupixent in terms of efficacy and set a new standard for the treatment of atopic dermatitis.

Following the announcement of the deal, Sanofi shares fell nearly 4% during trading on June 22 in Paris and closed the day down 2.2%.

Until recently, AbbVie’s flagship drug was Humira, used to treat rheumatoid arthritis, psoriasis, and other autoimmune diseases. Following the emergence of cheaper generics, the company has shifted its focus to the new drugs Skyrizi and Rinvoq, which have become the main drivers of business growth, Bloomberg notes.

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