Aug 25 - AbbVie ( ABBV ) said on Monday it would buy

privately held Gilgamesh Pharmaceuticals' treatment for major

depressive disorder in a deal worth up to $1.2 billion.

This could help bolster AbbVie's ( ABBV ) portfolio of treatments for

neurological conditions after its experimental schizophrenia

drug, which it gained access to through an $8.7 billion purchase

of Cerevel Therapeutics, failed in two mid-stage studies last

year.

The U.S. drugmaker has spent more than $20 billion on

acquisitions since 2023 as its flagship rheumatoid arthritis

treatment, Humira, lost patent protection.

Gilgamesh is developing treatments that work like

psychedelic drugs. Its lead candidate for depression,

bretisilocin, activates the 5-HT2A serotonin receptor - also

targeted by classic psychedelics such as psilocybin, found in

magic mushrooms, and LSD.

"Bretisilocin has been shown to exert a shorter duration of

psychoactive experience, while retaining an extended therapeutic

benefit," the companies said.

The deal follows the companies' partnership announcement

last year to develop therapies for psychiatric disorders, under

which Gilgamesh could receive up to $1.95 billion in option fees

and milestone payments.

Gilgamesh is also developing treatments for anxiety and

post-traumatic stress disorder.