By AbbVie Inc.’s stock (ABBV) fell 0.5% early Monday following the drug company’s adjustment of its first-quarter guidance. The revision is due to the dilutive impact of its closure of the acquisition of ImmunoGen.
AbbVie now expects its first-quarter per-share earnings to range from $2.26 to $2.30, down from the previous guidance of $2.30 to $2.34. This revised estimate includes a 4 cent per share dilutive impact resulting from the Immunogen deal. The acquisition of Immunogen was announced in November for an amount of $10.1 billion in all-cash.
One of the key assets from this deal is ImmunoGen’s antibody-drug conjugate (ADC) Elahere, which has already obtained approval as a treatment for ovarian cancer.
In addition, AbbVie also shared its full-year adjusted EPS outlook, ranging from $11.05 to $11.25. This estimation includes a 42 cent per share dilutive impact from the ImmunoGen deal and the pending close of Cerevel Therapeutics Holdings Inc. (CERE). In December, AbbVie revealed its plan to acquire Cerevel for $8.7 billion, emphasizing that Cerevel’s “robust” neuroscience pipeline offers potential medications that could revolutionize standard treatments for psychiatric and neurological illnesses.
Over the past 12 months, AbbVie’s stock has gained 14.5%, while the S&P 500 has observed a growth of 23%.
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