AbbVie (ABBV.N) is set to acquire an experimental depression treatment from Gilgamesh Pharmaceuticals for up to $1.2 billion, marking a strategic push into the rapidly growing psychedelic-based therapy market. The announcement was made Monday as AbbVie seeks new growth avenues following the patent loss of its flagship rheumatoid arthritis drug, Humira.
The deal builds on a partnership the two companies formed last year to develop therapies for psychiatric disorders. Under the agreement, Gilgamesh, a privately held firm, could receive up to $1.95 billion in option fees and milestone payments.
Gilgamesh is also advancing treatments for anxiety and post-traumatic stress disorder, positioning AbbVie to enter the competitive $50 billion market for psychedelic compounds aimed at psychiatric conditions, according to Cantor Fitzgerald analyst Josh Schimmer.
Earlier this year, Johnson & Johnson’s ketamine-derived Spravato became the first FDA-approved standalone psychedelic treatment for severe depression, opening the door for similar therapies. Other companies developing psychedelic-based psychiatric treatments include Compass Pathways, Atai Life Sciences, Cybin, and MindMed.
“Large pharma has been slower to explore psychedelic compounds due to potential regulatory hurdles, making today’s deal particularly significant,” said BMO Capital Markets analyst Evan Seigerman. He added that the deal’s valuation, appearing modest, may reflect these regulatory concerns.
The agreement includes an upfront payment and development milestones and strengthens AbbVie’s neurological portfolio after setbacks in its experimental schizophrenia program, acquired via an $8.7 billion purchase of Cerevel Therapeutics, which failed two mid-stage trials last year.
Gilgamesh’s lead candidate, bretisilocin, targets the 5-HT2A serotonin receptor, a mechanism shared by classic psychedelics such as psilocybin and LSD. Early and mid-stage studies suggest the drug offers a shorter psychoactive experience while maintaining prolonged therapeutic effects. AbbVie plans to advance bretisilocin into late-stage clinical trials.
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