By Sabela Ojea
Shares of Landos Biopharma on Monday surged 178% to $21.75 in pre-market trading after the company said it signed a deal to be acquired by AbbVie.
The companies have reached a definitive agreement for AbbVie to take over Landos Biopharma at a price of $20.42 per share in cash upon closing, or $137.5 million.
The deal could also include an additional payment of up to $75 million, dependent on the achievement of a clinical development milestone.
The takeover agreement comes as AbbVie looks to advance the development of the oral molecule NX-13, aimed at treating ulcerative colitis and Crohn's disease.
Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix
(END) Dow Jones Newswires
03-25-24 0943ET