In this week’s edition of InnovationRx, we look at AbbVie’s new megadeal, an agentic AI startup saving Medicare $2 million a week, how new student loan rules could degrade healthcare and more. To get it in your inbox, subscribe here.

AbbVie is bolstering its franchise in immune-system disorders with its $10.9 billion cash purchase of Apogee Therapeutics.

Apogee launched four years ago as a spinout from biotech Paragon Therapeutics. Its lead drug, called zumilokibart, is a long-lasting injectable that could treat autoimmune conditions like asthma and atopic dermatitis. In phase 2 clinical trials for atopic dermatitis, about two-thirds of patients on the drug gained significantly clearer skin.

AbbVie’s blockbuster drug Humira, the rheumatoid arthritis medication that was once the top-selling drug in the world, now faces competition from biosimilars and has seen its sales plummet. The company has filled the gap with blockbusters Rinvoq (for rheumatoid arthritis and other autoimmune diseases) and Skyrizi (for Crohn’s disease and psoriasis), which are expected to top $34 billion in sales this year. Its total revenue last year was $61 billion.

AbbVie is paying a 49% premium over Apogee’s closing price on Thursday before the deal was announced. While that makes it “fairly expensive,” William Blair analyst Matt Phipps wrote in a research note on Monday, “the mega-blockbuster potential of zumilokibart ensures the company’s [inflammation and immunology] franchise continues to see robust growth through the 2030s.”

This Startup Says It Saves Medicare More Than $2 Million A Week

Caring for people with chronic disease accounts for the vast majority of the $5.3 trillion the U.S. spends every year on healthcare. AI can help keep seniors healthier and cut costs by monitoring common chronic illnesses like hypertension and diabetes, argues Chris Altchek,........

© Forbes