ImmunoGen stock experienced a significant boost on Thursday as biopharmaceutical giant, AbbVie, announced its agreement to acquire the esteemed cancer treatment developer for a staggering $10.1 billion.
According to the terms of the sale agreement, AbbVie will be purchasing all outstanding shares of ImmunoGen at $31.26 per share, offering a remarkable 95% premium compared to the stock’s closing price of $16.07 on Wednesday.
However, the completion of this transaction is contingent upon both shareholder and regulatory approval. If granted, the sale is scheduled for closure in mid-2024 and is expected to positively impact AbbVie’s earnings by 2027.
AbbVie’s Chief Executive, Richard A. Gonzalez, expressed his enthusiasm about this acquisition in a recent news release, stating, “The acquisition of ImmunoGen showcases our unwavering dedication to fulfilling our long-term growth strategy and allows AbbVie to further diversify our promising oncology pipeline. Together, AbbVie and ImmunoGen possess the potential to revolutionize the standard of care for individuals battling cancer.”
As a result of this groundbreaking news, shares of ImmunoGen surged by over 80% during premarket trading on Thursday, reaching an impressive $29.10. Conversely, AbbVie’s shares experienced a slight dip of 0.4% to settle at $138.00.