AbbVie to buy Gilgamesh’s psychedelic drug for up to $1.2 billion

AbbVie on Monday said it will buy Gilgamesh Pharmaceuticals’ investigational psychedelic drug to treat major depression, a sign that pharma companies are warming up more to the burgeoning field.

The pharma giant will acquire the treatment, called bretisilocin, for up to $1.2 billion, including an upfront payment and development milestones. Meanwhile, Gilgamesh will spin off a new company called Gilgamesh Pharma Inc. for its staff and other drug programs.

The move builds on AbbVie’s growing focus on neuroscience. The company had already signed a collaboration agreement with Gilgamesh. Last year, it also acquired Cerevel Therapeutics for $9 billion, but following the closing of the deal, the key schizophrenia drug at the center of the acquisition failed to show benefits in key trials.