The current surge of Landos Biopharma, Inc. (NASDAQ: LABP) shares on the US charts, marking a notable surge of 168.27% to $21.46 per share as of the last check, is attributed to a takeover bid.
Today, Landos (LABP) disclosed a definitive agreement with AbbVie Inc., outlining AbbVie's intent to acquire Landos. At the forefront of Landos' offerings is NX-13, a pioneering oral NLRX1 agonist boasting a bimodal mechanism of action (MOA), renowned for its anti-inflammatory properties and its facilitation of epithelial repair.
The acquisition underscores AbbVie's strategic pursuit to propel the clinical progression of NX-13, distinguished for its innovative oral formulation and its potential to ameliorate the conditions of individuals grappling with ulcerative colitis and Crohn's disease.
This announcement epitomizes Landos' steadfast dedication to its mission of developing oral therapeutics tailored to fill existing treatment voids. NX-13, along with its bimodal MOA, presents a promising avenue for addressing the complexities of ulcerative colitis and Crohn's disease.
Given AbbVie's proficiency in therapeutic domains and its global development acumen, the company is poised to advance NX-13 effectively. NLRX1 serves as a pivotal regulator of immunometabolism and inflammation, with its activation influencing various facets of inflammatory bowel disease (IBD) pathogenesis.
Currently, the randomized controlled Phase 2 NEXUS clinical trial evaluating NX-13 in ulcerative colitis is actively enrolling patients across the United States and Europe (NCT05785715). Per the terms delineated in the agreement, AbbVie is set to acquire Landos at a per-share price of $20.42 in cash upon closure, totaling approximately $137.5 million.
Additionally, the deal incorporates a non-tradable contingent value right per share, valued at up to $11.14, amounting to an additional approximately $75 million contingent upon the attainment of a clinical development milestone. The anticipated finalization of the transaction is slated for the second quarter of 2024, pending customary closing prerequisites, including approval from Landos' shareholders.