Abb Vie cuts full-year outlook to reflect Apogee deal as second-quarter profit surges
AbbVie lowered its full-year adjusted earnings outlook to reflect its acquisition of Apogee Therapeutics, even as the pharmaceutical company reported higher profit and revenue for the latest quarter. The company said Friday that the proposed acquisition is expected to reduce 2026 earnings by 14 cents per share. AbbVie said the impact would be partly offset by earnings that have exceeded expectations so far this year. AbbVie agreed last month to acquire Apogee for about $10.9 billion to strengthen its core immunology business. The deal is expected to close in the third quarter and would add Apogee’s experimental drug zumilokibart, which could become a potential competitor to Dupixent in the treatment of moderate-to-severe atopic dermatitis, the most common type of eczema. The source identifies Regeneron Pharmaceuticals in connection with Dupixent but contains a truncated reference to another party. AbbVie now expects full-year adjusted earnings of $13.87 to $14.07 per share, down from its previous forecast of $13.91 to $14.11. Analysts surveyed by FactSet expected adjusted earnings of $14.06 per share. The stock fell 3.7% to $248 in premarket trading. Along with the new outlook, AbbVie reported second-quarter profit of $3.61 billion, or $2.03 per share, compared with $938 million, or 52 cents per share, in the year-earlier period. Excluding certain one-time items, earnings were $3.65 per share. Analysts expected adjusted earnings of $3.60 per share. Total revenue rose 10% to $16.99 billion, above Wall Street’s estimate of $16.78 billion. Revenue from AbbVie’s immunology portfolio increased 15% to $8.79 billion, driven by Skyrizi and Rinvoq, which are used to treat arthritis and Crohn’s disease, respectively. Revenue from the company’s neuroscience portfolio jumped 20% to $3.23 billion. Those gains helped offset a decline in oncology portfolio revenue and roughly flat revenue in the aesthetics business.
The company said Friday that the proposed acquisition is expected to reduce 2026 earnings by 14 cents per share. AbbVie said the impact would be partly offset by earnings that have exceeded expectations so far this year.
AbbVie agreed last month to acquire Apogee for about $10.9 billion to strengthen its core immunology business. The deal is expected to close in the third quarter and would add Apogee’s experimental drug zumilokibart, which could become a potential competitor to Dupixent in the treatment of moderate-to-severe atopic dermatitis, the most common type of eczema. The source identifies Regeneron Pharmaceuticals in connection with Dupixent but contains a truncated reference to another party.
AbbVie now expects full-year adjusted earnings of $13.87 to $14.07 per share, down from its previous forecast of $13.91 to $14.11. Analysts surveyed by FactSet expected adjusted earnings of $14.06 per share.
The stock fell 3.7% to $248 in premarket trading.
Along with the new outlook, AbbVie reported second-quarter profit of $3.61 billion, or $2.03 per share, compared with $938 million, or 52 cents per share, in the year-earlier period.
Excluding certain one-time items, earnings were $3.65 per share. Analysts expected adjusted earnings of $3.60 per share.
Total revenue rose 10% to $16.99 billion, above Wall Street’s estimate of $16.78 billion.
Revenue from AbbVie’s immunology portfolio increased 15% to $8.79 billion, driven by Skyrizi and Rinvoq, which are used to treat arthritis and Crohn’s disease, respectively. Revenue from the company’s neuroscience portfolio jumped 20% to $3.23 billion.
Those gains helped offset a decline in oncology portfolio revenue and roughly flat revenue in the aesthetics business.