AbbVie IPR&D Charge and Pharmaceutical Sector Implications

AbbVie’s $2.7B IPR&D charge hits Q3 and full-year EPS guidance; Street recalibrates expectations. Reuters reports ABBV now sees FY25 adjusted EPS at $10.38–$10.58 (prior $11.88–$12.08) and prelim Q3 EPS at $1.74–$1.78, both below consensus. The charge stems from acquired in-process R&D tied to deals/licensing. This signals continued external pipeline spending even as Humira wanes and newer drugs scale.

Summary

AbbVie is prioritizing pipeline building via deals, taking a large non-cash IPR&D expense in Q3 that lowers near-term EPS but implies sustained outsourcing and partnered development activity across immunology, oncology, and neuroscience.

Winners

Category: Contract Research Organizations (CROs)

Reason: Large pharma IPR&D and partnered assets typically rely on external trial ...