AbbVie stock briefly broke out Friday after the company signed a $30 million deal with small biotech Immunome in antibody development.
Immunome will use its platform to discover up to 10 new antibody pairs that could be used to treat cancer, the companies said in a news release. AbbVie will have the option to purchase worldwide rights for the antibodies arising from the deal.
"Immunome's approach has the potential to unlock novel cancer biology and yield multiple therapeutic candidates," AbbVie's Steve Davidsen said in a written statement. Davidsen is the company's vice president of oncology discovery research.
On today's stock market, AbbVie stock climbed 1.9% to close at 166.55.
AbbVie Stock Briefly Tops Buy Point
Immunome has a platform based on human memory B cells. These cells are key players in the immune system.
The news sent AbbVie stock past a buy point at 167.85 out of a cup-with-handle base, according to MarketSmith.com. Shares later fell below their entry. Immunome stock initially surged more than 27%, but shares closed up just a fraction.
Under the terms of the deal, AbbVie will pay Immunome $30 million upfront. Immunome will also receive up to $70 million in payments based on AbbVie's continued use of the Immunome platform and a max of $120 million in commercial milestones per target.
AbbVie stock has a high Composite Rating of 93 out of a total 99. This puts shares in the leading 7% of all stocks in terms of fundamental and technical measures, IBD Digital shows. Immunome has a lower CR of 33.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
