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
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
02-12-24 0809ET
Copyright (c) 2024 Dow Jones & Company, Inc.-
Going Into Earnings, Is Palantir Stock a Buy, a Sell, or Fairly Valued?
-
What’s Happening in the Markets This Week
-
4 Top Dividend-Paying REIT Stock Picks
-
After Earnings, Is Netflix Stock a Buy, a Sell, or Fairly Valued?
-
P-CAPE: A Better Way for Investors to Estimate Future Returns
-
Which Stocks Have Driven the Stealth Large-Value Rally?
-
Forecasts for Q2 GDP Report Show a Healthy but Slowing Economy
-
5 Stocks to Buy as the Market Rally Broadens
-
4 Top US Travel Stock Picks
-
How Do Interest Rates Affect Stock Market Returns?
-
American Airlines Earnings: Ticket Distribution Misstep Affected Results
-
Going Into Earnings, Is Albemarle Stock a Buy, a Sell, or Fairly Valued?
-
3 Top Cybersecurity Stock Picks for Long-Term Investors
-
AbbVie Earnings: Firm Sees Strong Next-Generation Immunology Drugs Sales
-
Ford Earnings: Warranty Problems on Older Vehicles Slam Results
-
ServiceNow Earnings: Operating on a Higher Plane Within Enterprise Software