AbbVie Set to Purchase a Johnson & Johnson-Supported Neuropharmaceutical Company for .4 Billion
AbbVie has made a significant move by announcing its intent to purchase Aliada Therapeutics, a startup known for its innovative drug delivery technology and a candidate for Alzheimer’s treatment currently in early human trials.
This acquisition, revealed on Monday, involves AbbVie acquiring all outstanding shares of Aliada for .4 billion in cash, with expectations for the transaction to conclude by the year’s end. Aliada, established in 2021 with initial funding from Johnson & Johnson’s venture branch and RA Capital Management, remains a private entity.
Aliada possesses a license for a technology developed by scientists at J&J, aimed at enhancing the transport of medications across the blood-brain barrier—a critical hurdle for neuropharmaceutical development. This barrier selectively permits certain molecules, posing challenges for drug developers focusing on brain-related therapies. Major companies like Roche, Biogen, and Eisai have previously licensed technologies or products intended to navigate this barrier.
AbbVie has identified neuroscience as a “key growth area” and noted that Aliada’s technology will bolster its discovery and development initiatives in this field. This method resembles a Trojan horse strategy, where potential drugs, typically barred from accessing the nervous system, are linked to “delivery molecules.” These carriers are engineered to bind to proteins that facilitate the transport across the barrier.
Roopal Thakkar, AbbVie’s chief scientific officer, emphasized that this strategy will enhance the company’s R&D capabilities and aid in developing “next-generation therapies for neurological and other diseases that require improved therapeutic delivery into the central nervous system.”
In the first half of this year, AbbVie’s neuroscience product line—including Botox, Vraylar, and Ubrelvy—reported a net revenue of .1 billion, marking an increase of over 15% compared to the same timeframe in 2023.
The acquisition also grants AbbVie access to ALIA-1758, an Alzheimer’s drug in clinical trials, aimed at addressing the accumulation of misfolded proteins thought to contribute to the disease. This drug targets a specific form of “amyloid beta” proteins, which are particularly stable and more prone to aggregation.
Analyst Paul Matteis from Stifel recognized the deal as noteworthy, citing it as a potential endorsement of amyloid-targeted therapies, even amidst declining sentiment in the sector following underwhelming performances by treatments like Aduhelm and Leqembi.
Moreover, Matteis observed that this transaction potentially positions AbbVie as a strong competitor to Denali Therapeutics, which utilizes a similar technology to Aliada’s. He noted that this acquisition underlines the significance of brain delivery systems in the pharmaceutical landscape.
This acquisition aligns with AbbVie’s recent trend of securing other companies, including the purchases of immune system specialists Celsius Therapeutics and Landos Biopharma for approximately 0 million, as well as the notable billion investment in cancer drugmaker Immunogen and .7 billion on Cerevel Therapeutics.
Despite increased interest in neuroscience among pharmaceutical giants, the sector has experienced a sharp decline in major acquisitions this year—only three reported compared to 2023, as noted in data from BioPharma Dive.
Editor’s note: This article has been updated to incorporate insights from analysts.