Mentioned:
One of the largest publicly traded pharmaceutical companies in the world is putting up a billion dollars for a psychedelic drug. But, why?
What’s happening:
- AbbVie (NYSE: ABBV) has struck a new deal with psychedelic drug development company Gilgamesh Pharmaceuticals to acquire their novel serotonergic psychedelic drug Bretisilocin for $1.2B USD
Why it matters:
- This is the first time ever that AbbVie has acquired a psychedelic derived drug
Going deeper:
- AbbVie will pay Gilgamesh an upfront amount of cash as well as specific drug development milestones as part of the new deal
- Gilgamesh Pharmaceuticals' Phase II clinical trials for Bretisilocin have showed significant validation for Bretisilocin to effectively treat individuals with major depressive disorder, with 94% of patients enrolled in the clinical trial showing remission from symptoms after just two doses
The intrigue:
- AbbVie will only acquire Gilgamesh Pharmaceuticals' Bretisilocin drug as part of the new deal and will not acquire Gilgamesh Pharmaceuticals in its entirety or any other drugs in the early stages of development
