Apogee Therapeutics (APGE) proposed $10.9 billion acquisition by AbbVie (ABBV) represents a "full and fair" valuation of its lead asset, zumilokibart, and the "long-acting IL-13" antibody is largely de-risked, entering Phase III development and has "mega-blockbuster potential" in atopic dermatitis and asthma, UBS Securities said in a note Tuesday.
AbbVie's "leading dermatology franchise" and commercial capabilities could help maximize the value of zumilokibart, while Apogee's broader immunology portfolio further supports the "strategic value" of the platform. The transaction is expected to close in Q3 and is seen facing limited antitrust risk due to minimal "overlap" between the companies, according to the report.
UBS downgraded Apogee Therapeutics to neutral from buy following the acquisition announcement, and raised the price target to $135.11 from $100, reflecting the "implied value of the transaction," and noted that few significant clinical catalysts are expected for the remainder of the year.
Price: $132.76, Change: $+0.20, Percent Change: +0.15%