ImmunoGen stock was rising Thursday following an announcement that biopharmaceutical company AbbVie has agreed to buy the cancer treatment developer for $10.1 billion.
Under the terms of the sale agreement, AbbVie will acquire all outstanding shares of ImmunoGen for $31.26 a share. That's a 95% premium to the stock's closing price of $16.07 on Wednesday.
The transaction is subject to shareholder and regulatory approval. If approved, the sale is scheduled to close in the middle of 2024 and is expected to be accretive to earnings in 2027.
"The acquisition of ImmunoGen demonstrates our commitment to deliver on our long-term growth strategy and enables AbbVie to further diversify our oncology pipeline," AbbVie Chief Executive Richard A. Gonzalez said in the news release. "Together, AbbVie and ImmunoGen have the potential to transform the standard of care for people living with cancer."
Shares of ImmunoGen were rising more than 82% in premarket trading Thursday to $29.25. AbbVie shares were down 0.2% to $138.20.