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AbbVie Cuts Its Guidance on ImmunoGen Deal

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Key Takeaways

  • AbbVie reduced its current quarter outlook related to costs from its acquisition of ImmunoGen.
  • The drug maker announced the $10.1 billion purchase in November, giving it access to ImmunoGen’s key ovarian cancer treatment.
  • AbbVie reiterated its full-year outlook, taking into account effects of its purchase of Immunogen and pending acquisition of Cerevel Therapeutics.

Drug maker AbbVie (ABBV) is lowering its current quarter guidance because of costs related to its acquisition of ImmunoGen.

AbbVie reduced 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 back in November of 2023 that it was buying 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 noted in Monday’s release that the addition of Elahere to AbbVie’s portfolio “will accelerate our ability to help patients today, expand our oncology pipeline and drive long-term revenue growth well into the next decade.”

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

AbbVie shares were 0.3% lower at $173.52 per share in intraday trading as of about noon ET Monday, but they were still up more than 12% over the past year.

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