AbbVie updates 2025 earnings guidance to reflect $2.7 billion IPR&D expense By Investing.com
Key Takeaways
- AbbVie expects a $2.7 billion pre-tax expense for acquired IPR&D and milestones in Q3 2025, negatively impacting EPS by $1.50 per share.
- The company updated its full-year 2025 adjusted diluted EPS guidance to a range of $10.38 to $10.58 following the anticipated Q3 expense.
- Despite the charge, analyst forecasts for AbbVie's profitability remain positive, and the stock is trading near its 52-week high.
- AbbVie is undertaking significant U.S. manufacturing expansion, including a $70 million bioresearch center upgrade in Massachusetts and a new $195 million API plant in Illinois.
- The company submitted regulatory applications for Pivekimab sunirine (for a rare blood cancer) and tavapadon (for Parkinson's disease).
AbbVie disclosed that its third quarter 2025 financial results will likely feature a substantial $2.7 billion pre-tax charge related to acquired in-process research and development (IPR&D) and milestones, which is projected to reduce both GAAP and adjusted diluted EPS by $1.50 per share. Although this expense necessitates an update to their full-year 2025 adjusted diluted EPS guidance, analysts maintain positive profitability forecasts, and the stock trades near its 52-week high. Concurrently, AbbVie is executing major strategic expansions in the U.S., including a $70 million expansion of its Bioresearch Center in Worcester, Massachusetts, to boost biologics capacity, and the construction of a new $195 million active pharmaceutical ingredient plant in North Chicago, Illinois. Furthermore, the company is advancing regulatory submissions, having filed a Biologics License Application for Pivekimab sunirine and a New Drug Application for tavapadon, while also planning to align the UK pricing for its ovarian cancer drug, ELAHERE, with U.S. levels.
