AbbVie to Acquire Gilgamesh's Experimental Antidepressant for $12 Billion

AbbVie Inc. has agreed to acquire an experimental antidepressant drug from Gilgamesh Pharmaceuticals for up to $12 billion. The acquisition includes Gilgamesh's core candidate drug, bretisilocin, which is being developed to treat severe depression. As part of the deal, Gilgamesh will spin off its other research projects to form a new entity, Gilgamesh Pharma Inc. Both parties have stated that the transaction is subject to customary closing conditions.

AbbVie's Chief Scientific Officer, Roopal Thakkar, commented on the acquisition, emphasizing the company's commitment to expanding and enhancing mental health care through investments in novel treatment methods. These new methods have the potential to benefit patients who do not respond to existing therapies. This acquisition underscores AbbVie's strategic move to bolster its mental health portfolio, particularly in the area of innovative treatments for severe depression.

Reports from last month indicated that AbbVie was in discussions with Gilgamesh to strengthen its pipeline of psychiatric disorder treatments. Previously, a drug acquired by AbbVie for the treatment of schizophrenia failed in mid-stage trials. This transaction comes more than a year after AbbVie and Gilgamesh entered into a collaboration agreement to jointly develop next-generation psychedelic drugs for mental health conditions. Both parties have stated that the "license option" clause in the collaboration agreement will remain in effect and will be transferred to the newly formed Gilgamesh Pharma Inc. upon the spin-off of Gilgamesh's projects.

In the United States, the use of psychedelic drugs for treating severe depression is gaining increasing support. It is estimated that over 20 million adults in the United States suffer from severe depression, with approximately 30% not responding to current treatments. Gilgamesh has been developing a new class of psychedelic drugs known as neuroplastogens, which are said to act quickly and do not induce hallucinations. In May of this year, the company announced positive results from its research on bretisilocin (also known as GM-2505) for the treatment of severe depression.

The acquisition highlights a growing trend among pharmaceutical companies to explore alternative therapies that could offer faster and more effective relief for patients who have not responded to traditional treatments. The deal is expected to enhance AbbVie's position in the mental health market, providing it with a promising new drug candidate that could address a significant unmet medical need. The transaction underscores AbbVie's commitment to investing in innovative treatments that have the potential to transform mental health care.