AbbVie acquires Celsius for $250M in cash

AbbVie has made a strategic acquisition with the purchase of Celsius Therapeutics, an inflammatory disease-focused company, for $250 million in cash. The centerpiece of this deal is Celsius' lead clinical-stage asset, CEL383, a pioneering antibody targeting the triggering receptor expressed on myeloid cells 1 (TREM1) for treating inflammatory bowel disease (IBD). TREM1 has been identified as a crucial gene in IBD that exacerbates inflammation.

CEL383 has gone through a phase 1 clinical trial, although the results have not been publicly disclosed. This double-blind, single ascending dose study included 48 healthy volunteers and concluded in January, as per ClinicalTrials.gov records. Preclinical studies have shown that CEL383 effectively blocks TREM1 signaling, thereby reducing the levels of various inflammatory mediators associated with inflammatory conditions, according to a press release dated June 27.

Dr. Kori Wallace, AbbVie’s Vice President and Global Head of Immunology Clinical Development, expressed enthusiasm about the acquisition. "Given the potential relevance of TREM1 as a key driver of inflammation and pathology in IBD and other conditions, we are eager to advance the development of CEL383 with a goal of helping more patients with IBD achieve remission," Wallace stated in the release.

Under the agreement, AbbVie has acquired all outstanding equity of Celsius for the $250 million deal. This acquisition highlights AbbVie's commitment to enhancing standard-of-care treatments, as emphasized by an AbbVie spokesperson in a communication to Fierce Biotech.

Earlier in the month, AbbVie invested $150 million for licensing rights to FutureGen Biopharmaceutical's preclinical anti-TL1A candidate, also aimed at treating IBD. This move aligns with AbbVie's broader goal to aid patients with chronic conditions in achieving remission, as stated by Jonathon Sedgwick, Ph.D., AbbVie's Senior Vice President and Global Head of Discovery Research, in a press release announcing the FutureGen deal.

CEL383 is the only known clinical-stage asset from Celsius Therapeutics, a biotech company launched by Third Rock Ventures. This acquisition marks a significant shift from Celsius' initial vision. In 2019, when the company was named a Fierce 15 winner, CEO Dr. Tariq Kassum had emphasized an independent, long-term strategy. "The plan is to become a fully integrated drug discovery and development shop," Kassum told Fierce Biotech at that time. "The long-term vision is to make this into something special and valuable; I don’t want us to just package it up for sale. We have a real shot at building something bold and unique, so we should try and do it from the ground up."

However, much has changed over the past five years, including the impact of a global pandemic and a prolonged biotech bear market. Signs of challenges for Celsius became evident in August 2023 when the company laid off 75% of its workforce. These layoffs coincided with the phase 1 launch of CEL383.