Health Care Company AbbVie Announces Acquisition of Immunogen

AbbVie ABBV has announced an acquisition of Immunogen IMGN that is expected to be completed 2024-H1.

Under the terms of the agreement, AbbVie has agreed to give Immunogen $10.10 billion in cash in exchange for IMGN stock.

About The Companies Involved

AbbVie is a pharmaceutical firm with a strong exposure to immunology and oncology. The firm's top drug, Humira, represents close to half of the company's current profits.

Immunogen Inc is a clinical-stage biotechnology company from the United States. Its focus is antibody-drug conjugate, or ADC, technology, which uses an antibody that fixes on a target (its antigen) found on tumor cells to deliver a specific cancer-killing agent.

How An Acquisition Works

An acquisition is when one company, called the acquiring company, buys most or all of another company's, or target company's, shares to gain ownership. Buying more than 50% of a company's stock allows the the acquirer to make decisions without the approval of the company's shareholders.

An acquisition can potentially lead to a merger with the parent company, which makes it similar to a merger. This is why the two terms are commonly grouped together as mergers and acquisitions (M&A). However, in a merger, the leadership & operations of both companies usually change dramatically, while during an acquisition this is less likely to happen.

Make sure to follow our mergers & acquisitions calendar to stay-up-to-date on the most recent M&A deals.

This article was generated by Benzinga's automated content engine and reviewed by an editor.