Fed’s Powell opens door to potential rate cuts at Jackson Hole
Investing.com - AbbVie has lifted its full-year earnings forecast despite expenses related to its ongoing acquisition drive, sending shares higher in premarket U.S. trading on Thursday.
The drugmaker has spent around $20 billion on deals since 2023 as it looks to expand its portfolio following the expiration of patent protection for its flagship rheumatoid arthritis treatment, Humira.
Earlier this week, Bloomberg News reported that AbbVie (NYSE:ABBV) was in talks to acquire mental health therapeutics firm Gilgamesh Pharmaceuticals for roughly $1 billion. Meanwhile, last month AbbVie announced that it would buy private-held cell therapy developer Capstan Therapeutics in a move worth up to $2.1 billion.
Even though its acquisition spree is seen leading to an unfavorable impact of $0.55 per share from research and development costs as well as milestone payments incurred so far this year, AbbVie said it now anticipates that annual adjusted diluted per-share income will come in at $11.88 to $12.08, up from a prior projection of $11.67 to $11.87.
In a statement, CEO Robert Michael said AbbVie delivered a solid second quarter that featured "meaningful pipeline progress" marked by "strategic investments in promising external innovation."
"We’re entering the second half of the year with substantial momentum," Michael added.
For the second quarter, net revenue grew by 6.6% versus the prior year to $15.42 billion, compared with Bloomberg consensus estimates of $15 billion. Adjusted earnings per share stood at $2.97.