AbbVie updates 2025 earnings guidance to reflect $823 million IPR&D expense

Published 03/07/2025, 18:26
AbbVie updates 2025 earnings guidance to reflect $823 million IPR&D expense

AbbVie Inc . (NYSE:ABBV) announced Thursday that its expected second quarter 2025 GAAP and adjusted non-GAAP earnings will include a pre-tax acquired in-process research and development (IPR&D) and milestones expense of $823 million. This expense is projected to have an unfavorable impact of $0.42 on both GAAP diluted earnings per share and adjusted non-GAAP diluted earnings per share for the quarter.

The company stated that results for the quarter ended June 30, 2025, have not been finalized and remain subject to financial statement closing procedures. AbbVie noted that final results may differ from these preliminary estimates. The company’s strong financial health score of "GOOD" from InvestingPro and consistent dividend yield of 3.44% underscore its stability despite short-term fluctuations.

AbbVie clarified that acquired IPR&D and milestones expenses are typically incurred upon execution of collaborations, licensing agreements, and other asset acquisitions. The company does not forecast these expenses due to the uncertainty regarding the timing and occurrence of such transactions.

AbbVie updated its full-year 2025 adjusted diluted earnings per share guidance to a range of $11.67 to $11.87, which now includes the impact of the second quarter 2025 acquired IPR&D and milestones expense. The company also provided a second quarter 2025 adjusted diluted earnings per share guidance range of $2.84 to $2.88, incorporating the same expense.

The information in this article is based on a press release statement included in AbbVie’s Form 8-K filing with the Securities and Exchange Commission.

In other recent news, AbbVie announced an agreement to acquire Capstan Therapeutics, a biotechnology company, for up to $2.1 billion in cash. This acquisition includes Capstan’s lead asset, CPTX2309, which is in Phase 1 development for treating B cell-mediated autoimmune diseases. The deal also provides AbbVie with Capstan’s proprietary platform technology designed for RNA delivery to specific cell types. Morgan Stanley (NYSE:MS) reiterated its Overweight rating on AbbVie, viewing the acquisition as a positive step in expanding the company’s immunology pipeline. Additionally, AbbVie declared a quarterly dividend of $1.64 per share, continuing its history of dividend increases since 2013.

The U.S. Food and Drug Administration accepted Allergan (NYSE:AGN) Aesthetics’ application, an AbbVie company, for SKINVIVE by JUVEDERM to treat neck lines. If approved, this would be the first hyaluronic acid injectable targeting neck lines specifically. Furthermore, AbbVie’s migraine prevention drug, atogepant, showed superior results in a Phase 3 trial compared to topiramate, with fewer patients discontinuing due to adverse events. The trial results support recommendations from the American Headache Society and International Headache Society for CGRP pathway inhibitors as first-line preventive treatments for migraines.

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