AbbVie Joins Big Pharma Rush into Molecular Glue Degraders with $1.64B Neomorph Deal

In a significant move that underscores the growing interest in protein degradation technologies, AbbVie has entered into a licensing agreement with Neomorph worth up to $1.64 billion. This partnership, announced on January 23, 2025, aims to develop molecular glue degraders for multiple targets in oncology and immunology.

Neomorph's Hat-Trick of Big Pharma Deals

Neomorph, a San Diego-based biotech company specializing in protein degradation, has secured its third major pharmaceutical partnership in less than a year. This latest collaboration with AbbVie follows similar high-value deals with Biogen and Novo Nordisk, each worth approximately $1.5 billion.

The AbbVie-Neomorph agreement includes an undisclosed upfront payment to Neomorph, along with potential milestone payments and royalties. Steven Elmore, Ph.D., AbbVie's vice president of small molecule therapeutics and platform technologies, expressed enthusiasm for the partnership, stating, "Protein degraders represent a groundbreaking advancement in the field of drug discovery and at AbbVie we are committed to advancing this technology forward."

The Promise of Molecular Glue Degraders

Molecular glue degraders represent a novel class of small molecule drugs designed to selectively degrade disease-driving proteins. These compounds work by bringing together proteins that wouldn't typically interact, potentially addressing targets previously considered "undruggable."

The technology has garnered significant attention from major pharmaceutical companies, with Biogen, Novartis, Takeda, and Novo Nordisk all striking deals in this space over the past year. Other industry giants such as Roche, Bristol Myers Squibb, Merck & Co., and Eisai have also shown interest in the field.

Neomorph's Rise in Protein Degradation

Founded in 2020, Neomorph quickly established itself as a leader in the protein degradation field. The company's founders, including Phil Chamberlain, Eric Fischer, Benjamin Ebert, and Scott Armstrong, are recognized experts in molecular glue technology.

Neomorph's rapid ascent began with a $109 million Series A financing round in 2020, aimed at advancing its platform and programs. The company has since secured partnerships with Biogen (worth up to $1.45 billion) and Novo Nordisk (up to $1.46 billion) before finalizing its latest deal with AbbVie.