The pharmaceutical sector is ripe with opportunities after merger and acquisition activities continued on Monday. On Monday, AbbVie (ABBV) said it would buy Apogee (APGE) for $135.11 per share. It is paying all cash.
ABBV stock jumped by 6.25%, while APGE stock gained 46.66%. The deal strengthens AbbVie’s drug pipeline. It will add Apogee’s lead asset, Zumilokibart. This is a monoclonal antibody that targets IL-13. Treatments for APG777 include atopic dermatitis, Asthma, and eosinophilic Esophagitis. In the former two diseases, this drug could compete effectively against Regeneron’s (REGN) Dupixent.
AbbVie’s peers include Bristol-Myers Squibb, Pfizer (PFE), J&J (JNJ), Merck (MRK), and Amgen (AGN). Among them, BMY and PFE shares offer good value.
In the vaccine space, Moderna (MRNA) slipped by over 7% yesterday. The breakout from the mid $45-$50 range is at risk of losing momentum. Before the drop on Monday, MRNA stock gained for six straight sessions.
On June 18, the FDA advisory panel agreed that the mRNA seasonal flu vaccine (mRNA-1010) outweighed risks for subjects who were 50 – 75 years old. This is a welcome reversal from February’s FDA decision. Back then, the FDA issued Moderna a refusal-to-file letter. It cited a lack of an adequate and well-controlled trial. Still, the agency reversed that decision in late February.
