AbbVie abandons Galapagos phase III and stock plummets 39% (and still dropping)

28/09/2015 - 3 minutes

What was AbbVie thinking? Backing out of a $1.4Bn deal to support Belgian biotech Galapagos’ rheumatoid arthritis candidate through its phase III, means NASDAQ stock is plummeting in value since Friday. With plans to work on its own phase II candidate instead, AbbVie is losing out on the potential of filgotinib, which will surely have a new biotech sponsor in their place by the end of the week.

galapagosThe Galapagos story has been very positive until recently, with a €1.2Bn investment coming from US AbbVie for their JAK1 inhibitor, filgotinib. With strong phase II results for treatment of up to 900 patients with rheumatoid arthritis, filgotinib stirred an initial rush from pharma giants AbbVie and Johnson&Johnson, both of which who has rheumatoid drug patents due to soon expire.

This investment followed a more-than successful IPO launch into the US market, which smashed the IPO target of €134.3M in a public ‘bubble’ to become the largest Euopean biotech IPO on the US market ever at €240M.

This content is available exclusively to our paying members.

Our members receive the following benefits:

  • Unlock premium articles
  • Download our industry reports
  • Remove all banner ads
  • Access 1,500+ archived posts
  • Support our independent media
Already a member? Sign in
ADVERTISEMENT
Do you want to remove this advert? Become a member!
ADVERTISEMENT
Do you want to remove this advert? Become a member!

Support Us

Become a Member