AbbVie to Buy Gilgamesh Depression Drug for Up to $1.2 Billion

AbbVie Inc. agreed to buy an experimental depression treatment from Gilgamesh Pharmaceuticals Inc. for up to $1.2 billion in a deal that highlights the drug industry’s growing interest in next-generation psychedelic compounds.

Under the terms of the agreement, AbbVie will acquire Gilgamesh’s lead drug bretisilocin, which is in development for major depressive disorder, according to a statement. Gilgamesh will spin its other programs off into a new entity called Gilgamesh Pharma Inc.

The deal is still subject to customary closing conditions, the companies said.

“This acquisition underscores our commitment to broadening and enhancing psychiatric care by investing in novel ...