Premium as high as 60%! AbbVie (ABBV.US) plans to acquire Apogee (APGE.US) for $10.9 billion, with an official announcement expected as soon as today.

According to informed sources, AbbVie (ABBV.US) is close to reaching an agreement to acquire the anti-inflammatory drug developer Apogee Therapeutics (APGE.US) for nearly $11 billion. This deal is expected to be the largest strategic acquisition for the pharmaceutical giant since 2019. Sources said that under the terms of the proposed acquisition, Apogee's investors will receive $10.9 billion in cash, which represents a premium of about 60% over the company's recent closing price. Barring any last-minute changes, the deal is expected to be announced as early as Monday. Apogee's stock has more than doubled in the past 12 months, with a nearly 20% increase in March after positive results from the mid-stage trial of its core candidate drug, zumilokibart, for atopic dermatitis (an inflammatory skin disease). A potential deal would further strengthen AbbVie's immunology product line, which is led by its anti-inflammatory drugs Humira, Skyrizi, and Rinvoq, which collectively generated $30.4 billion in revenue last year, with a growth rate of about 14%. If finalized, this deal is expected to be the largest for the Chicago-based pharmaceutical giant since its $80 billion acquisition of the maker of Botox, Allergan, in 2019.