© Reuters. FILE PHOTO: A sign stands outside a Abbvie facility in Cambridge, Massachusetts, U.S., May 20, 2021. REUTERS/Brian Snyder/File Photo
(Reuters) -AbbVie said on Thursday it will buy drugmaker ImmunoGen (NASDAQ:) for $10.1 billion, adding a promising drug for ovarian cancer to its portfolio of oncology treatments.
Through the deal, AbbVie (NYSE:) gains Elahere, which is approved for ovarian cancer patients who have received previous therapies, and is also being tested in earlier lines of treatment.
The drugmaker will pay $31.26 per ImmunoGen share in cash, representing a premium of 94.6% to the last closing price.
ImmunoGen shares have more than tripled this year, after the company said in May that Elahere helped extend the lives of patients in a late-stage trial.
For Abbvie, the deal would help boost its plans to expand into the cancer drug market as its top-selling product Humira, a rheumatoid arthritis treatment, faces fierce competition in the United States.
Abbvie makes blood cancer drug Imbruvica, which was selected in August as one of the 10 drugs subject to the first-ever price negotiations by U.S. Medicare insurance plans.