AbbVie ABBV has announced a deal with private neuroscience biotech, Gilgamesh Pharmaceuticals, to acquire the latter\u2019s lead pipeline candidate, bretisilocin (GM-2505), a novel therapy being developed for treating major depressive disorder
(MDD).<\/p>\n
Gilgamesh is currently developing bretisilocin, a novel, psychedelic compound, in a phase II study for treating moderate-to-severe\u00a0MDD. Data from a phase II study on bretisilocin, announced in May this year, showed that the candidate led to a rapid, robust and durable antidepressant effect in MDD patients. In the study, bretisilocin demonstrated a statistically significant reduction in the\u00a0Montgomery-\u00c5sberg Depression Rating Scale (MADRS) total score compared to the low-dose psychoactive comparator. MADRS is a scale used to measure the severity of depressive symptoms. Patients improved by an average of 21.6 points on MADRS versus 12.1 points for the comparator at Day 14.<\/p>\n
AbbVie\u2019s stock has gained 20.1% so far this year compared with an increase of 1.6% for the industry.<\/p>\n
Zacks Investment Research <\/p>\n
Image Source: Zacks Investment Research<\/p>\n
Psychedelic compounds, including 5-HT2A\u00a0receptor agonists like bretisilocin, produce a much shorter psychedelic experience than existing psychedelics which makes them more patient-friendly. However, despite the shorter sessions, they offer long-lasting therapeutic effects.<\/p>\n
For acquiring Gilgamesh’s bretisilocin program, AbbVie will make a payment of up to\u00a0$1.2 billion, which includes an upfront payment and development milestones. Separately, Gilgamesh will spin off its other drug programs, like NMDA antagonist blixeprodil and ibogaine analog, into a new company, Gilgamesh Pharma, while AbbVie takes full control of bretisilocin.<\/p>\n
In May last year, AbbVie inked an option and licensing deal with Gilgamesh to research and develop next-generation therapies for psychiatric disorders. The deal remains in place and will be transferred to Gilgamesh Pharma.<\/p>\n
AbbVie has been on an acquisition spree in the past couple of years to bolster the early-stage pipeline that should drive long-term growth. It has signed some early-stage deals in the neuroscience area.<\/p>\n
In December last year, it acquired Aliada, a private biotech whose lead pipeline candidate is ALIA-1758, an anti-pyroglutamate amyloid beta (3pE-A\u03b2) antibody, which is being developed in a phase I study for Alzheimer’s disease. Last year, AbbVie also acquired neuroscience drugmaker, Cerevel Therapeutics, which added the latter\u2019s novel pipeline candidates being studied across a range of psychiatric and neurological disorders, including schizophrenia, Parkinson’s disease (PD) and mood disorders. However, in November 2024, two registration-enabling phase II studies on emraclidine, a once-daily, oral candidate for treating schizophrenia added from the Cerevel deal, failed to meet their primary endpoints. Emraclidine was a key reason for AbbVie to buy the company, thus bringing into question the viability of the deal.<\/p>\n
Story Continues <\/p>\n
AbbVie\u2019s neuroscience drugs have become an important contributor to top-line growth. Sales from AbbVie\u2019s neuroscience portfolio increased 20.3% to around $5 billion in the first half of 2025, driven by higher sales of Botox Therapeutic, depression drug Vraylar and migraine drugs Ubrelvy and Qulipta.<\/p>\n
AbbVie currently carries a Zacks Rank #3 (Hold).<\/p>\n
Some better-ranked large drugmakers are J&J JNJ and Bayer BAYRY, both with a Zacks Rank #2 (Buy). You can see the complete list of today\u2019s Zacks #1 Rank (Strong Buy) stocks here.<\/p>\n
J&J\u2019s stock has risen 25.4% in the year-to-date period. The Zacks Consensus Estimate for J&J\u2019s 2025 earnings has risen from $10.60 per share to $10.86 over the past 60 days, while that for 2026 has risen from $10.98 to $11.36.<\/p>\n<\/p>\n
J&J exceeded earnings expectations in each of the trailing four quarters. It delivered a four-quarter earnings surprise of 5.73%, on average.<\/p>\n
Bayer\u2019s stock has risen 67.2% in the year-to-date period. The Zacks Consensus Estimate for Bayer\u2019s 2025 earnings has risen from $1.25 per share to $1.30 over the past 60 days, while that for 2026 has risen from $1.31 to $1.34.<\/p>\n
Bayer exceeded earnings expectations in two of the trailing four quarters while missing in one and delivering in-line results in the other. It delivered a four-quarter negative earnings surprise of 3.91%, on average.<\/p>\n
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report<\/a><\/p>\n Johnson & Johnson (JNJ) : Free Stock Analysis Report<\/a><\/p>\n Bayer Aktiengesellschaft (BAYRY) : Free Stock Analysis Report<\/a><\/p>\n AbbVie Inc. (ABBV) : Free Stock Analysis Report<\/a><\/p>\n This article originally published on Zacks Investment Research (zacks.com).<\/a><\/p>\n