ImmunoGen, AbbVie's $10B Deal Comes At 'Right Time' Analyst Says In Downgrade Note
Portfolio Pulse from Priya Nigam
AbbVie Inc (ABBV) is set to acquire ImmunoGen, Inc. (IMGN) for approximately $10 billion, with the deal expected to close in mid-2024. The acquisition price of $31.26 per share is considered a 'great price' for ImmunoGen by Piper Sandler. Analyst Joseph Catanzaro downgraded ImmunoGen's rating from Overweight to Neutral and increased the price target from $24 to $31, reflecting the deal terms. The acquisition is timely for ImmunoGen as it faces future uncertainties regarding the Elahere launch. A competing bid is deemed unlikely by the analyst, who also notes that ImmunoGen's ADC platform will complement AbbVie's oncology franchise.
December 04, 2023 | 3:44 pm
News sentiment analysis
Sort by:
Descending
POSITIVE IMPACT
AbbVie is acquiring ImmunoGen for around $10 billion, expected to close in mid-2024, which will enhance its oncology franchise.
The acquisition of ImmunoGen is likely to be viewed positively as it strengthens AbbVie's oncology portfolio, particularly in ovarian cancer and solid tumors. The strategic fit and the lack of competing bids suggest a smooth acquisition process, which could be favorable for AbbVie's stock in the short term.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 80
NEUTRAL IMPACT
ImmunoGen's stock was downgraded from Overweight to Neutral by Piper Sandler, with a raised price target from $24 to $31, reflecting the acquisition terms by AbbVie.
While the acquisition by AbbVie is at a 'great price' for ImmunoGen shareholders, the analyst downgrade reflects the completion of the acquisition process and the unlikely event of a competing bid. The new price target is aligned with the acquisition price, suggesting limited upside potential for the stock in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100