AbbVie Enters Cancer Treatment Space via RemeGen Licensing Deal, UBS Says

MT Newswires Live01-14

AbbVie (ABBV) is entering the PD-1/VEGF cancer treatment class, a competitive emerging area for solid tumors, after securing global rights to RemeGen's RC148 outside China, a deal that includes milestone payments and tiered double-digit royalties, UBS Securities said.

Some investors thought AbbVie would partner with Summit Therapeutics (SMMT) to enter the PD-1/VEGF market, given historical ties and past success with ibrutinib. The brokerage said in a Monday note that valuations and total considerations likely influenced AbbVie's decision to pursue the RemeGen asset instead.

AbbVie enters the space with strong China data for a $650 million upfront payment, similar to what other biopharma peers have paid for competitive assets, UBS added.

The investment firm believes that RC148 could have broad potential across multiple tumor types and expects AbbVie to outline development plans in future updates. The brokerage views the deal as positive and one that could strengthen the company's oncology pipeline.

The brokerage said early China lung cancer data looks promising and competitive versus peers including Summit Therapeutics and Pfizer (PFE).

UBS has a neutral rating on AbbVie with a $240 price target.

Price: 219.73, Change: -0.31, Percent Change: -0.14

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