Following the acquisition of Elgin for $63 billion in 2019 and Pharmacyclics for $21 billion in 2015, AbbVie's largest transaction has occurred.

On June 22nd, AbbVie announced that it will acquire all outstanding common shares of Apogee Therapeutics at a cash price of $135.11 per share, with a total equity value of approximately $10.9 billion. According to the news, Apogee's pre-market stock price surged nearly 53%. The acquisition consideration for this transaction is about 60% higher than Apogee's closing price on June 18th.

Apogee's core asset is a subcutaneous injection of anti-IL-13 monoclonal antibody called zumilokubart (APG777), which is currently in phase II clinical trials and is expected to commence phase III research on atopic dermatitis in the second half of 2026. This drug is the cornerstone of Apogee's entire pipeline, and almost all other ongoing research projects revolve around combination therapies designed around zumilokubart.  

The most attractive advantage of Zumilokibart is its long dosing interval. In the APEX Phase II trial, zumilokubart showed significant therapeutic effects within the first 16 weeks, and the number of injections was significantly reduced. During the maintenance treatment phase, medication can be administered every 3 to 6 months with sustained or even enhanced efficacy. The administration frequency of Dupixent has significantly decreased compared to approximately 2-4 weeks.

But the question is, can the advantage of medication frequency alone sustain a transaction consideration of $10.9 billion?

This acquisition is by no means accidental. It is a landmark event that marks the beginning of the 3.0 new stage of competition in the self exemption track, and it is also the best entry point to understand the "internal competition" and "differentiation" of the entire industry.

01、AbbVie bets billions of dollars on long-term sustainability

IL-13， Interleukin-13, mainly secreted by activated Th2 helper T cells, mast cells, and eosinophils, belongs to the IL-4/IL-13 cytokine family. The principle mechanism is to activate the JAK-STAT6 signaling pathway by binding to the receptor dimer composed of IL-4R α and IL-13R α 1 on the cell surface, thereby triggering a series of reactions such as eosinophil aggregation, airway remodeling, and excessive mucus secretion. 

In allergic inflammation, this target is at the core and is currently a hot research direction in the fields of allergic diseases and fibrosis. The current "self immunotherapy king" Dupixent is a drug that targets the IL-13/IL-4 pathway. By 2025, Dupixent's sales will reach approximately $17.8 billion, a year-on-year increase of 25.2%; In the first quarter of 2026, Dupixent sold $4.874 billion in a single quarter, a year-on-year increase of 30.8%. Up to now, Dupixent has obtained 8 indications, including atopic dermatitis, asthma, chronic sinusitis with nasal polyps, nodular prurigo, eosinophilic esophagitis, chronic obstructive pulmonary disease, etc., covering the main disease spectrum on the Th2 immune axis. The results of two Phase III studies, SOLO 1 and SOLO 2, showed that Dupixent treatment achieved the primary endpoint in adult patients with moderate to severe atopic dermatitis.

 In the overall assessment by researchers (IGA), the proportion of patients in the weekly or biweekly treatment group who had their skin lesions cleared or almost cleared was 36% -38%, significantly better than the 10% and 8% in the placebo group (p<0.0001). 44% -52% of patients in the treatment group had a 75% or more reduction in eczema area and severity index score (EASI-75), compared to only 12% -15% in the placebo group (p<0.0001). In addition, the treatment group showed an average improvement of approximately 67% -72% in EASI scores compared to baseline, while the placebo group showed an improvement of approximately 31% -38% (p<0.001). 

IL-13 is a target that has been fully validated for both clinical and commercial value. Although the target itself is not new, Apogee has chosen a new approach. Compared with tumors, a significant core feature of autoimmune diseases is their long course of illness, and patients often require lifelong or several years of continuous medication. This makes compliance and medication convenience have unique clinical and commercial significance in the field of self exemption. Based on this logic, Apogee has made a systematic layout around "long-term". The readout data of APEX Phase II Part B shows that zumilokubart even outperforms Dupixent's SOLO series historical data in terms of efficacy indicators.

 In the high-dose group, medium dose group, and low-dose group, 61.6%, 65.9%, and 50.5% of patients achieved EASI-75 scores, respectively, all higher than Dupixent's previous performance. But what really sets it apart is the intergenerational advantage in convenience. The induction period of Zumilokibart load administration only takes 4 days, while the current standard treatment regimen requires approximately 9 days. Apogee genetically engineered antibodies to enhance their binding ability to FcRn recycling receptors, significantly prolonging the half-life of the antibodies in the body, ultimately achieving a maintenance regimen of administering once every 3 to 6 months. In terms of safety, the incidence of conjunctivitis in the optimal dose group was 10.6%, which is also lower than the level of similar drugs.

 Based on the positive results of APEX Phase II, Apogee plans to launch the Zumilokibart Phase III ADventure project for the treatment of moderate to severe AD in the second half of 2026, subject to regulatory approval. In addition, Apogee has simultaneously released the ASPIRE Phase IIb registration trial for moderate to severe asthma and the ELEVATE Phase IIa concept validation study plan for eosinophilic esophagitis (EoE), further expanding the development potential of Zumilokibart in the multi indication field. Around Zumilokibart, Apogee is also advancing two joint pipelines.

One is the combination of Zumilokibart and APG990 (OX40L), which has entered phase I clinical stage and supports dosing intervals of 3 to 6 months. Another option is to use it in combination with the long-acting anti TSLP antibody APG333, which can target asthma and chronic obstructive pulmonary disease with medication intervals of up to two months or even longer.

It was this "long-lasting" combination punch that ultimately led AbbVie to make the decision to acquire Apogee at a high premium.

02、The truth behind the "involution" of the billion dollar market
 

As the second largest market after tumors, there is a wide variety of autoimmune diseases, including atopic dermatitis (AD), psoriasis (PsO), rheumatoid arthritis (RA), systemic lupus erythematosus (SLE) and about 100 different diseases, affecting about 5% -8% of the global population. The global market is currently close to $150 billion. Looking back at the history of the self driving circuit, AbbVie's Xiumeile is an inseparable name. With its ultimate patent layout and ability to expand indications, Xiumeile achieved a sales myth of $21.23 billion in 2022. However, with the expiration of core patents and the influx of biosimilars, Xiumeile's sales plummeted sharply. 

By 2025, there will be only 4.54 billion US dollars left, a decline of nearly 80% compared to the peak period. But AbbVie was not defeated by the fall of the 'Medicine King'. With the successful takeover of Skyrizi (Lysimab) and Rinvoq (Upatinib), two "twin stars", AbbVie will achieve $30.406 billion in immunization business revenue by 2025, firmly occupying the position of the world's top self immunization leader. Skyrizi's global net income will reach 17.562 billion US dollars in 2025, a year-on-year increase of nearly 50%; Rinvoq reached $8.304 billion, a year-on-year increase of approximately 38%. The total sales of the two drugs reached 25.866 billion US dollars, surpassing the historical peak of Xiumeile. What is even more remarkable is the speed of increasing volume. 

Xiumeile took 11 years to unlock $10 billion in sales, while Skyrizi only took less than 6 years; From $10 billion to $20 billion, Xiu Meile took another 8 years, while Skyrizi is likely to only take 2 years. However, the anxiety of competition still follows closely. The "involution" of the current self exemption track is first reflected in the high concentration of target points. The current pattern of self immunotherapy is still dominated by antibody drugs targeting cytokines such as TNF - α and interleukin. In the global top 10 self immunotherapy drugs by 2025, almost all of them, such as Xiumeile, Dupixent, Skyrizi, etc., come from the interleukin family and JAK targets. AbbVie's willingness to spend $10.9 billion just for the sake of long-term sustainability is the best portrayal of the intense competition in the self exemption track.

 Although Dupixent is still the best-selling self-propelled heavyweight bomb at present, the gap between Skyrizi and it is very small, and the immunization business revenues of Sanofi, AbbVie, Johnson&Johnson, and Novartis all exceed $10 billion. The mutual pursuit of MNCs also reflects the cruelty of this race track. On the back of the fierce competitive landscape, there is a structural contradiction: despite the emergence of biologics, the huge clinical demand has not been fully met. The medication cycle for autoimmune diseases is long, and patient compliance is poor. 

According to a research report by China Post Securities, taking psoriasis as an example, the overall psoriasis market is expected to reach $27 billion in 2023, of which $2.5 billion is for oral medications, accounting for only 9%. It is expected that by around 2034, the market share of oral medication will increase to 33%. But from the demand side, 75% of patients who receive injection therapy have the willingness to switch to oral administration. This huge supply-demand mismatch means that there is vast incremental space in terms of efficacy iteration, dosage form innovation, and compliance improvement. Faced with the red ocean, the industry is seeking differentiation breakthroughs from multiple dimensions. 

Extending the frequency of drug administration is currently one of the most clear trends, as evidenced by AbbVie's acquisition. At the same time, oral medications are also accelerating their breakthrough. The oral selective JAK1 inhibitor Rinvoq is a typical case of oral drug breakthrough. In 2019, Rinvoq was approved for the treatment of moderate to severe rheumatoid arthritis (RA), and its sales have rapidly increased, reaching $8.304 billion by 2025. More noteworthy is the exploration of new targets and mechanisms. The industry is transitioning from the 2.0 era of interleukin monoclonal antibodies to various new technological forms in the 3.0 era - self immunization TCE, small nucleic acid drugs, PROTAC... The next generation of self immunization products will undergo comprehensive technological iterations in terms of effectiveness, safety, and compliance. 

Whoever can go the farthest in three dimensions has the potential to define the treatment standards for the next decade.

03、Chinese Power: The Golden Window for Overtaking on Curves
 

As the global self exemption track enters the iterative window period of the 3.0 era, Chinese pharmaceutical companies are participating in this competition at an unprecedented speed and depth. The field of immune diseases in China is currently experiencing explosive growth. According to the Insight database, more than 20 domestically produced immune new drugs have obtained regulatory approval, and more than 10 new drugs have submitted market applications. 

The drug types cover monoclonal antibodies, bispecific antibodies, chemical drugs, and antibody fusion proteins, involving targets such as IL-17A, IL-4R α, CD20, JAK1, TPOR, etc. These approved products not only accumulate in quantity, but also make differentiated attempts in key dimensions. For example, as the first domestically approved IL-4R alpha monoclonal antibody, Konya's Sprucubizumab avoids direct competition with Dupilumab due to its differentiated layout for seasonal allergic rhinitis indications. 

In 2025, without being covered by medical insurance, the sales revenue of Sipuximab increased significantly by 775% year-on-year, reaching 315 million yuan. With the product being included in the national medical insurance catalog in December 2025, 2026 will become the first complete year of its medical insurance volume expansion, highlighting the certainty of volume expansion. Sansheng Guojian was approved for Anmuqietamab (IL-17A) in early 2025, becoming the only IL-17A inhibitor in China that can be administered every 8 weeks during the maintenance period, with significant differentiation advantages. What is even more noteworthy is the potential for China's self exempt new drugs to surpass in the next generation of technology.

 Konya's CM512, the world's first long-acting TSLP x IL-13 dual blocker, can simultaneously target TSLP and IL-13, with a half-life of up to 70 days in the human body, and is expected to achieve longer dosing intervals. The Phase I study showed that the response rate of EASI-75 reached 58.3% at 12 weeks after the first administration. On June 22nd, Fanli Biotechnology announced that it had signed an exclusive licensing agreement with Bionyra Pharma, with a potential transaction value of up to $985 million. The transaction involves two new drugs, namely anti-TL1A monoclonal antibody (TL-001) and anti-TL1A/IL-23p19 bispecific antibody (TL-003). These two drugs also have prolonging half-life as their design core. 

Fanli Biotechnology's TrueForge platform deeply integrates translational science, antibody engineering, and machine learning/generative AI technology. By integrating multiple omics biological data and proprietary analysis models, it identifies novel therapeutic targets, optimizes the drug properties and pharmacokinetic characteristics of antibodies, and accelerates the discovery of differentiated next-generation biopharmaceuticals. In the PROTAC direction, the layout of domestic pharmaceutical companies is also shifting from "sporadic exploration" to "multi-point flowering". 

BeiGene's BGB-45035 (IRAK4 PROTAC) is the first IRAK4 degrading agent drug to enter Phase II; The HPB-143 (IRAK4 PROTAC) of Multi Domain Biotechnology will authorize overseas equity to Photys Therapeutics in February 2025, and Multi Domain Biotechnology will receive corresponding down payments, recent payments, clinical development and drug launch milestone payments, sales commissions and sales milestone payments, as well as partial equity of Photys. Chinese innovative drugs have never lacked the ability to catch up from behind. 

Looking back at the rise path of new drugs in China over the past decade, from the rapid follow-up of PD-1, to the collective overseas launch of ADC drugs, and to the global debut of Ecovacil dual antibody, Chinese new drugs have completed the transformation from "following" to "running in parallel" or even "leading" in the field of oncology. These three steps cross, each following the same logic: engineering iteration on the mature technology route, transforming the accumulation of "me better" into intergenerational advantages in product strength. Nowadays, in the field of self exemption, Chinese pharmaceutical companies are once again at the forefront of next-generation technological iteration. History does not simply repeat itself, but the efficiency of iteration has always been the most certain trump card for innovative drugs in China. This script is being performed again on the self exemption track.

Reference article: 

1. After the decline of Yaowang, AbbVie went crazy with mergers and acquisitions; Yaozhi Headlines
2. The biggest biotech myth of 2026: a phase II drug with 261 employees sold for $10.9 billion; Medical Yao
3. Domestic self-administered drugs are showing their potential; Same freehand brushwork
4. Molecular glue, too flammable; Archimedes Biotech
5. Apogee Announcement