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NORTH CHICAGO, Ill. – AbbVie (NYSE: ABBV), a global biopharmaceutical company with a market capitalization of $332 billion and annual revenue exceeding $57 billion, has entered into a strategic collaboration with ADARx Pharmaceuticals to develop small interfering RNA (siRNA) therapeutics, as announced today. This partnership aims to advance treatments across neuroscience, immunology, and oncology. According to InvestingPro analysis, AbbVie currently trades below its Fair Value, suggesting potential upside opportunity for investors.
siRNA molecules have the potential to regulate gene expression and protein production, offering an innovative approach to silencing disease-causing genes. The collaboration will combine ADARx’s proprietary RNA technology and discovery expertise with AbbVie’s experience in antibody engineering and drug delivery methods to enhance the development of siRNA-based therapies.
Jonathon Sedgwick, Ph.D., senior vice president and global head of discovery research at AbbVie, emphasized the promise of siRNA as a genetic medicine approach and the importance of overcoming existing challenges in siRNA targeting and delivery. Zhen Li, Ph.D., co-founder, president, and CEO of ADARx, highlighted the collaboration’s potential to leverage AbbVie’s research and development capabilities and global commercial reach to benefit patients worldwide.
ADARx will receive a $335 million upfront payment and could earn billions more in contingent payments, including option fees, milestone payments, and tiered royalties. The agreement underscores the shared commitment of both companies to innovate in the treatment of difficult-to-treat diseases. AbbVie, which maintains a robust 3.49% dividend yield and has raised its dividend for 12 consecutive years, demonstrates strong financial capability to support such strategic investments. InvestingPro data reveals 9 analysts have recently revised their earnings estimates upward for the upcoming period, suggesting positive momentum for the company.
This collaboration reflects AbbVie’s ongoing mission to address serious health issues and medical challenges of the future through innovative medicines and solutions, while ADARx continues to advance a robust pipeline of clinical-stage programs and discovery efforts in various therapeutic areas. With a "GOOD" Financial Health Score from InvestingPro and strong return metrics over the past decade, AbbVie continues to demonstrate its position as a prominent player in the biotechnology industry. Investors seeking detailed analysis can access comprehensive Pro Research Reports, available for over 1,400 US stocks, including AbbVie, through InvestingPro.
The partnership is subject to customary risks and uncertainties, including intellectual property challenges, competition, research and development difficulties, and global economic conditions, which could impact the outcome of the collaboration.
This news article is based on a press release statement from AbbVie.
In other recent news, AbbVie has reported strong financial performance for the first quarter of 2025, surpassing Wall Street expectations with an adjusted earnings per share (EPS) of $2.46, compared to the forecasted $2.39. The company also reported revenues of $13.3 billion, exceeding forecasts by nearly $550 million. Following these results, AbbVie has raised its full-year EPS guidance to a range of $12.09 to $12.29 and increased its revenue forecast by approximately $700 million, now targeting around $59.7 billion. Meanwhile, Guggenheim Securities has adjusted its price target for AbbVie shares to $216, citing strong sales of Skyrizi and Rinvoq. Conversely, Citi has downgraded AbbVie’s stock from Buy to Neutral, with a revised price target of $205, due to concerns over the company’s late-stage pipeline and potential policy risks. Additionally, AbbVie announced that the FDA has approved RINVOQ for the treatment of giant cell arteritis, marking it as the first oral Janus Kinase inhibitor for this condition in the U.S. BMO Capital Markets has maintained an Outperform rating for AbbVie, with a price target of $215, highlighting the company’s robust performance and strong growth in its neuroscience portfolio.
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