AbbVie Inks a Deal With Neomorph for Molecular Glue Degraders

Collaboration and Licensing Agreement - AbbVie has entered into a collaboration and option-to-license agreement with Neomorph to develop molecular glue degraders for oncology and immunology targets [1] - Molecular glue degraders are a novel class of small molecules designed to selectively degrade disease-driving proteins, targeting 'undruggable' proteins using Neomorph's proprietary discovery platform [1] - Neomorph will receive an upfront payment and is eligible for up to $1.64 billion in option fees, milestones, and tiered royalties based on net sales [2] Neomorph's Background and Partnerships - Neomorph, founded in 2020, has attracted interest from major pharmaceutical companies, including partnerships with Biogen and Novo Nordisk [3] - The Novo Nordisk deal, worth$1.46 billion, focuses on cardiometabolic and rare diseases, while the Biogen deal, worth $1.45 billion, targets immunology and neurology, including Alzheimer's disease [3] AbbVie's Stock Performance - AbbVie's shares have gained 4% over the past year, outperforming the industry's 4% decline [6] AbbVie's Acquisition Strategy - AbbVie has been actively acquiring companies to strengthen its pipeline, particularly in immunology, oncology, and neuroscience [7] - Recent acquisitions include Landos Biopharma and Celsius Therapeutics for inflammatory bowel disease (IBD) treatments, and a license agreement with China's FutureGen for a next-generation anti-TL1A antibody for IBD [8] - AbbVie completed the acquisition of Nimble Therapeutics, adding innovative oral peptide-based therapies, including a novel IL23R inhibitor for psoriasis treatment [9] - The company also signed an option-to-license agreement with Simcere for a trispecific antibody candidate in multiple myeloma and acquired Aliada Therapeutics for neuroscience drug development [10] - AbbVie expanded its neuroscience collaboration with Gedeon Richter and signed a licensing agreement with EvolveImmune Therapeutics for next-generation cancer biotherapeutics [10]