AbbVie (ABBV) has agreed to acquire an investigational antidepressant treatment from Gilgamesh Pharmaceuticals for up to $1.2 billion. Under the agreement, AbbVie will gain control of Gilgamesh’s lead candidate drug, bretisilocin, which is currently being developed for major depressive disorder. Meanwhile, Gilgamesh plans to spin off its remaining research projects into a new company named Gilgamesh Pharma Inc. Both parties stated that the transaction remains subject to customary closing conditions.
In a statement, AbbVie’s Chief Scientific Officer, Roopal Thakkar, emphasized that the acquisition reflects the company’s commitment to expanding and enhancing mental health care by investing in innovative therapies, particularly for patient populations that do not respond adequately to existing treatments. Last month, it was reported that AbbVie was in talks with Gilgamesh to strengthen its pipeline in mental health therapeutics. This move follows the failure of one of AbbVie’s earlier acquisitions, aimed at treating schizophrenia, to meet expectations in mid-stage trials.
Notably, this deal comes just over a year after the two companies entered into a collaborative research and development agreement. More than a year ago, they had already agreed to jointly develop next-generation psychedelics for mental health disorders. According to the announcement, the “option-to-license” clause included in the original collaboration agreement will remain in effect and be transferred to the newly established Gilgamesh Pharma Inc. as part of the spin-off process.
Currently, the use of psychedelic drugs in treating major depressive disorder is gaining increasing acceptance in the United States and abroad. Data shows that more than 20 million adults in the U.S. suffer from major depressive disorder, with approximately 30% of them not responding adequately to existing treatment options. Gilgamesh has been focused on developing a new generation of psychedelics known as “neuroplastogens,” which are said to take effect rapidly without inducing hallucinations. In May of this year, the company announced positive progress in its lead candidate drug, bretisilocin (also known as GM-2505), for major depressive disorder.
Evan Seigerman, an analyst at BMO Capital Markets, noted in a report that large pharmaceutical companies have historically been cautious about psychedelic drugs, primarily due to regulatory uncertainties during the approval process. This, he added, is what makes the current transaction particularly significant.
