Pharmaceutical giant AbbVie is in advanced discussions to acquire Gilgamesh Pharmaceuticals, a privately-held clinical-stage company focused on mental health therapeutics, in a deal worth approximately $1 billion, according to Bloomberg News reports citing people familiar with the matter.
The potential acquisition would significantly expand AbbVie's presence in the psychiatric disorders space, building upon an existing partnership established in May between the two companies. Under that collaboration agreement, Gilgamesh could receive up to $1.95 billion in option fees and milestone payments for jointly developing therapies for psychiatric disorders.
Strategic Expansion in Mental Health
Gilgamesh Pharmaceuticals, led by founder and CEO Jonathan Sporn, specializes in developing treatments for depression, anxiety, post-traumatic stress disorder, and drug addiction. The company is currently advancing a new class of compounds called "neuroplastogens" - psychedelic-based therapies designed to promote neuroplasticity.
The acquisition discussions come as AbbVie has accelerated its acquisition strategy, spending over $20 billion on deals since 2023 as its flagship rheumatoid arthritis treatment Humira faced patent expiration and biosimilar competition.
Clinical Pipeline Progress
Gilgamesh recently announced positive preliminary results from a mid-stage clinical trial of its lead candidate GM-2505 for the treatment of major depressive disorder (MDD). This neuroplastogen compound represents part of the company's broader pipeline targeting various psychiatric conditions.
AbbVie currently markets Vraylar for the treatment of schizophrenia and bipolar disorder, though the company previously experienced a setback when an acquired schizophrenia drug candidate failed in mid-stage clinical trials last year.
Industry Consolidation Trend
The potential deal reflects broader consolidation trends in the mental health therapeutics sector, where demand for effective treatments continues to rise alongside increased awareness and recognition of psychiatric disorders. The growing interest in psychedelic-based therapies has attracted significant pharmaceutical industry attention.
Other companies in the space, including Atai Life Sciences, are also reportedly exploring acquisition interest from major industry players. Atai recently acquired Beckley Psytech and achieved positive results in a mid-stage trial of its psychedelic nasal spray BPL-003.
Deal Status and Timeline
According to Bloomberg News, deliberations over the Gilgamesh acquisition are ongoing and could potentially be delayed or fall apart entirely. Neither AbbVie nor Gilgamesh immediately responded to requests for comment regarding the reported discussions.
The negotiations represent a natural progression of the companies' existing partnership, which began over a year ago with a selective licensing agreement to jointly develop new mental health therapies. An official announcement regarding the potential acquisition is anticipated within the coming weeks, though the outcome remains uncertain.
