AbbVie (ABBV) Stock Falls After Company Denies Revolution Medicines Buyout Talks

TLDR

• AbbVie stock fell 1% after hours following company’s denial of Revolution Medicines acquisition talks
• Revolution Medicines shares dropped 11.5% in extended trading after surging 30% during regular session
• AbbVie cuts 2025 earnings forecast to $9.90-$9.94 per share from previous $10.61-$10.65 guidance
• Wall Street Journal reported AbbVie was pursuing $20 billion deal for cancer drug developer
• Revolution Medicines develops RAS-targeting drugs for lung cancer and pancreatic cancer treatment

AbbVie stock dropped in after-hours trading Wednesday after the pharmaceutical giant denied reports of acquisition talks with Revolution Medicines. The denial came hours after Wall Street Journal reports sent both companies’ shares soaring.

AbbVie stock fell 1% in extended trading. The shares had closed 4% higher during regular trading hours on the acquisition speculation.

AbbVie Inc., ABBV

Revolution Medicines stock plunged 11.5% after the denial. The biotech had closed nearly 30% higher with a market value around $20 billion.

AbbVie Earnings Forecast Cut

AbbVie announced a separate earnings revision Wednesday. The company slashed its 2025 profit outlook due to a $1.3 billion fourth-quarter charge.

The drugmaker now projects adjusted earnings per share of $9.90 to $9.94. Previous guidance called for $10.61 to $10.65 per share.

The charge relates to in-process research and development expenses. This represents a substantial hit to near-term profitability expectations.

AbbVie has spent over $20 billion on acquisitions since 2023. The spending spree aims to offset revenue losses from Humira’s patent expiration.

Humira was AbbVie’s flagship rheumatoid arthritis treatment. The drug previously generated massive revenue before losing patent protection.

Revolution Medicines Deal Details

The Wall Street Journal reported multiple suitors showed interest in Revolution Medicines. Sources said AbbVie was in advanced talks to acquire the cancer drug developer.

Revolution Medicines has a market value around $20 billion. Including typical premiums, a deal could have exceeded that valuation.

The biotech develops drugs targeting RAS proteins. These molecules drive many lung cancers and pancreatic cancers.

Revolution Medicines’s experimental treatments remain in development. Some candidates haven’t yet entered human testing stages.

Drug companies have pursued RAS inhibitors for decades. The target’s role in cancer makes it valuable for pharmaceutical developers.

AbbVie bought ImmunoGen for $10 billion in 2024. The company acquired Pharmacyclics for $21 billion in 2015.

The drugmaker generates half its revenue from immune condition treatments. Products treat psoriatic arthritis and Crohn’s disease.

AbbVie has a market value above $400 billion. Company strategy focuses on acquiring technologies for long-term growth.

Revolution Medicines declined to comment on the reports. The company cited its policy against addressing rumors or speculation.

A source told the Journal no deal had been finalized. Another potential buyer may still pursue Revolution Medicines.

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