AbbVie to acquire Gilgamesh Pharmaceutical’s experimental depression drug for up to USD 1.2 billion. The company is seeking to access a fast-growing market for psychedelic-based treatments.
Since 2023 Abbvie has spent more than USD 20 billion for drugs that can drive growth as its flagship rheumatoid arthritis treatment, Humira, lost patent protection.
Last year the companies had signed a partnership to develop therapies for psychiatric disorders, with privately held Gilgamesh set to receive up to USD 1.95 billion in option fees as well as milestone payments.
As Gilgamesh deals with developing treatments for anxiety and post-traumatic stress disorder, also launch AbbVie into the race to develop psychedelic compounds for psychiatric conditions, a potential USD 50 billion market, according to Cantor Fitzgerald analyst Josh Schimmer.
This deal, which includes an upfront payment and development milestones, can also fuel AbbVie's neurological disorders portfolio after its experimental schizophrenia drug, which it gained access to through an USD 8.7 billion purchase of Cerevel Therapeutics, failed in two mid-stage studies last year.
Gilgamesh's lead candidate for depression, bretisilocin, activates the 5-HT2A serotonin receptor also targeted by classic psychedelics including psilocybin, found in magic mushrooms, and LSD.
The agreement will give AbbVie control of an asset that recently achieved a 94% remission rate in a phase 2 major depressive disorder (MDD) trial. 40 patients received two doses, about two weeks apart, and were evaluated almost one month after the first dose.
For Gilgamesh, the deal will enable Big Pharma support for bretisilocin and funding for other programs. The new entity, Gilgamesh Pharma, will house the biotech’s employees, other programs as well as existing pact with AbbVie. The other R&D programs include an oral NMDA receptor antagonist, an ibogaine analog and an M1/M4 agonist program.
