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Shares of Landos Pharmaceuticals (NASDAQ:LABP) soared 170% in morning trading Monday after AbbVie (NYSE:ABBV) said it had agreed to pay up to $213M for the company, including an upfront cash payment of approximately $138M.
Under the deal, AbbVie will pay $20.42 per share in cash up front, plus a non-tradeable contingency value right worth up to $11.14 per share if a clinical milestone is met. The deal is expected to close in Q2, subject to certain conditions including Landos shareholder approval.
Shares of Landos recently sold for $21.57 per share at around 10:55 a.m. ET. AbbVie shares were trading largely flat at $178.63.
Landos’s lead drug, NX-13, is being developed as a potential treatment for ulcerative colitis and Crohn’s disease. The company is currently enrolling patients in a Phase 2 study for the product in the treatment of ulcerative colitis.
