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AbbVie reduces guidance on ImmunoGen deal

by SuperiorInvest

Key takeaways

  • AbbVie lowered its current quarterly outlook related to the costs of the ImmunoGen acquisition.
  • The drugmaker announced the $10.1 billion purchase in November, which will give it access to ImmunoGen's key ovarian cancer treatment.
  • AbbVie reiterated its full-year outlook, taking into account the effects of the Immunogen purchase and the pending acquisition of Cerevel Therapeutics.

Drugmaker AbbVie (ABBV) is lowering its current quarterly guidance due to costs related to the ImmunoGen acquisition.

AbbVie lowered its first-quarter earnings per share (EPS) outlook to a range of $2.26 to $2.30, from $2.30 to $2.34. The company said the update included a dilutive impact of 4 cents per share related to the deal, which closed Monday.

AbbVie had announced in November 2023 that it would buy ImmunoGen for $10.1 billion, or $31.26 per share, giving it access to ImmunoGen's flagship drug, Elahere, to treat platinum-resistant ovarian cancer.

AbbVie CEO Robert Michael said in Monday's statement that the addition of Elahere to AbbVie's portfolio “will accelerate our ability to help patients today, expand our oncology product portfolio and drive revenue growth to long term well into the next decade.

Along with the changes to first-quarter guidance, AbbVie reaffirmed its full-year earnings per share of between $11.05 and $11.25, which now incorporates a dilutive impact of 42 cents per share from the ImmunoGen deal and the acquisition. pending Cerevel Therapeutics Holdings (CERE).

AbbVie shares fell 0.3% to $173.52 per share in intraday trading around noon ET on Monday, but are still up more than 12% over the past year.

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