AbbVie Partners with Neomorph for $1.64 Billion Deal to Develop Novel Cancer Treatments

AbbVie and Neomorph have announced a strategic partnership and option-to-license agreement aimed at creating a new class of treatments using molecular glue degraders. This collaboration focuses on selectively targeting and inducing the degradation of proteins that are associated with disease progression, particularly those deemed “undruggable.”

Under the terms of the agreement, AbbVie will make an upfront payment to Neomorph, which has the potential to earn up to $1.64 billion through option fees and milestone payments. Additionally, Neomorph will receive tiered royalties on net sales of the resulting products.

Founded in 2020 and headquartered in San Diego, California, Neomorph specializes in developing therapies for previously “undruggable” targets and is backed by Deerfield Management Company. Neomorph’s CEO, Phil Chamberlain, expressed enthusiasm about the partnership, stating, “We are thrilled to partner with AbbVie, a global leader in delivering transformative medicines in oncology and immunology, as we aim to tackle some of the most challenging and valuable targets known.”

In a separate but related move, AbbVie has successfully completed the acquisition of Nimble Therapeutics, integrating its operations into AbbVie’s framework. Nimble’s lead asset, an oral peptide interleukin 23 receptor (IL23R) inhibitor, is currently in preclinical stages and is targeted for treating psoriasis.

AbbVie’s global head of discovery research, Jonathon Sedgwick, remarked on the acquisition, stating, “We are excited to expand our immunology pipeline to include Nimble’s novel oral peptide assets and look forward to integrating this proprietary technology into our research and development capabilities.” The acquisition, announced in December 2024, included a $200 million cash payment at closing, along with potential interim funding.

These developments highlight AbbVie’s commitment to advancing its portfolio in oncology and immunology while fostering innovation through strategic partnerships and acquisitions.