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AbbVie Gains Lung Cancer ADC, Solid Tumor Platform With Stemcentrx Buyout

 
• By Joseph Haas

As part of its strategy to offset the coming Humira patent cliff, AbbVie Inc. is looking to oncology as a "significant pillar of growth" going forward, a gambit CEO Richard Gonzalez says will benefit greatly from both the pipeline candidates and the solid tumor R&D engine his company will obtain in the $5.8bn purchase of Stemcentrx announced April 28.

The transaction was unveiled in tandem with AbbVie's first quarter earnings call, during which the company reported an 18.2% year-over-year increase in net revenues to $5.96bn, with Humira (adalimumab) up 14.9% to $3.58bn. (Also see "Humira Competition Dominates AbbVie Earnings" - Scrip, 1 February, 2016.) The firm's hematology asset Imbruvica (ibrutinib), partnered with Johnson & Johnson, posted what Gonzalez termed "strong growth" to $381m on the quarter. J&J reported first quarter sales of $281m worldwide, up from $116m in the year-ago quarter. (Also see " JnJ Not Sweating Remicade Biosimilar Approval " - Scrip, 20 April, 2016.)

AbbVie hopes to continue its oncology expansion with the Stemcentrx play. The firm agreed to pay $2bn in cash and $3.8bn in stock for Stemcentrx, making it one of the highest valuations ever for a venture-backed biotech takeout, along with up to $4bn in regulatory and clinical development milestones to Stemcentrx shareholders

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