March 25 Reuters AbbVie will buy drug developer Landos Biopharma for up to 212 million as the Humiramaker aims to expand its pipeline of medicines to treat immune systemrelated illnesses, the companies said on Monday.

Landos is currently conducting a midstage study of its lead experimental drug NX13 in a type of an inflammatory bowel disease called ulcerative colitis.

AbbVie39;s blockbuster drug Rinvoq is approved to treat the disease while the company has also sought the U.S. Food and Drug Administration39;s approval for its other key drug Skyrizi.

Under the deal, AbbVie will buy Landos for 20.42 per share in cash, or about 137.5 million in total. The offer marks a 161 premium to Friday39;s close of 7.83.

Landos39; shares surged to 22.13 before the bell after a short trading halt.

AbbVie has also agreed to pay Landos shareholders an additional up to 11.14 per share, or around 75 million in total, contingent on certain clinical development milestones.

The deal is expected to close in the second quarter, the companies said.

Reporting by Leroy Leo in Bengaluru; Editing by Sriraj Kalluvila

Source Reuters