Potential Mental Health Expansion
Pharmaceutical giant AbbVie is reportedly in advanced negotiations to acquire Gilgamesh Pharmaceuticals, a privately held biotech firm focused on mental health treatments. According to sources cited by Bloomberg News, the proposed deal is valued at around $1 billion, highlighting AbbVie’s strategic interest in expanding its presence in the psychiatric therapeutics market.
A Shift Following Humira’s Patent Expiry
The move comes as part of AbbVie’s broader effort to diversify its portfolio following the loss of patent protection for its blockbuster arthritis drug, Humira. Since 2023, the U.S.-based company has spent over $20 billion on acquisitions, seeking to strengthen its pipeline and secure new sources of revenue amid growing competition in the biologics sector.
Gilgamesh’s Clinical Focus
Gilgamesh Pharmaceuticals is currently in the clinical development stage, working on a new generation of therapies aimed at treating a range of psychiatric disorders, including depression, anxiety, and post-traumatic stress disorder (PTSD). Its innovative approach and focus on neuropsychiatric conditions have attracted the attention of major industry players looking to address unmet needs in mental health care.
Ongoing Partnership and Potential Payouts
In May, AbbVie announced a research collaboration with Gilgamesh to co-develop novel psychiatric treatments. Under the terms of that agreement, Gilgamesh could receive up to $1.95 billion in option fees and milestone payments, depending on the progress of the joint development programmes. This earlier partnership may have paved the way for the current acquisition talks, reflecting a growing confidence in Gilgamesh’s research pipeline.
Deal Not Yet Finalised
While discussions between the two companies are ongoing, sources close to the matter caution that the negotiations could face delays or fall through entirely. Nonetheless, the potential acquisition signals AbbVie’s continued commitment to investing in innovative therapies within the mental health space, a field gaining increasing attention both medically and commercially.
As the pharmaceutical sector continues to pivot towards addressing mental health challenges, AbbVie’s possible acquisition of Gilgamesh could prove to be a strategic step in reshaping its future therapeutic portfolio.