AbbVie lowers first-quarter guidance after closing acquisition ImmunoGen

By Ciara Linnane

AbbVie Inc.'s stock fell 0.5% early Monday, after the biotech lowered its first-quarter guidance to reflect the dilutive impact of its closure of the acquisition of ImmunoGen.

AbbVie (ABBV) said it now expects first-quarter per-share earnings to range from $2.26 to $2.30, down from prior guidance of $2.30 to $2.34, including a 4 cent per share dilutive impact from the Immunogen deal.

AbbVie announced the $10.1 billion all-cash deal for Immunogen in November, that includes ImmunoGen's antibody-drug conjugate (ADC) Elahere, which has been approved as a treatment for ovarian cancer.

Elahere is the first and only ADC to get regulatory approval for ovarian cancer. About 19,680 women in the U.S. will receive a new diagnosis of ovarian cancer this year, according to estimates from the American Cancer Society.

"ImmunoGen's follow-on pipeline of ADCs further builds on AbbVie's existing solid tumor pipeline of novel targeted therapies and next-generation immuno-oncology assets, which have the potential to create new treatment possibilities across multiple solid tumors and hematologic malignancies," AbbVie said in a statement.

The company reaffirmed that it expects full-year adjusted EPS of $11.05 to $11.25, which includes a 42 cent per share dilutive impact from the ImmunoGen deal and the pending close of Cerevel Therapeutics Holdings Inc. (CERE).

AbbVie announced its plan to buy Cerevel in December for $8.7 billion, saying that Cerevel's "robust" neuroscience pipeline adds medications that may transform standards of care in psychiatric and neurological illnesses.

AbbVie's stock has gained 14.5% in the last 12 months, while the S&P 500 has gained 23%.

-Ciara Linnane

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02-12-24 0809ET

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