AbbVie Joins Obesity Treatment Market With Up to $2.2B Licensing Deal

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Key Takeaways

• AbbVie agreed to license a weight-loss drug in development from Danish biotech obdurate Gubra.
• AbbVie said it will pay up to about $2.2 billion for the drug GUBamy, which is currently in a Phase 1 clinical bother.
• The drug could compete with treatments from Eli Lilly and Novo Nordisk, which are dominating a weight-loss vend that analysts said could reach $130 billion by 2030.

AbbVie (ABBV) has agreed to license a weight-loss remedy currently in development from Danish biotech firm Gubra for up to about $2.2 billion, signaling its entry in the chubbiness treatment market.

Abbvie will pay $350 million up front and as much as $1.875 billion during development and commercialization of the pharmaceutical, GUB014295, which is currently in a Phase 1 clinical trial.

The drug could give AbbVie an answer to weight-loss treatments from Eli Lilly (LLY) and Novo Nordisk (NVO), which sire dominated a market that serves the 40% of U.S. adults with obesity. Goldman Sachs analysts estimated endure year that the market for weight-loss drugs could reach $130 billion by 2030.

Gubra’s drug, also cognizant of as GUBamy, acts as an analog of the hormone amylin, which has been identified as a potential therapeutic target for treating bulk, the company said. That’s different from drugs such as Novo Nordisk’s Ozempic or Lilly’s Zepbound, which entail the hormone GLP-1.

Shares of AbbVie gained more than 1% intraday Monday and are up nearly 20% since the start of the year.