TLDR
- AbbVie stock dropped 1% after hours after company denied Revolution Medicines acquisition talks
- Revolution Medicines shares fell 11.5% in extended trading following the denial statement
- AbbVie slashed 2025 earnings forecast to $9.90-$9.94 per share from $10.61-$10.65
- Wall Street Journal had reported AbbVie pursuing $20 billion deal for cancer biotech
- Revolution Medicines develops experimental RAS-targeting drugs for cancer treatment
AbbVie stock fell in after-hours trading Wednesday following the company’s denial of Revolution Medicines acquisition reports. The pharmaceutical giant issued a direct statement contradicting earlier media coverage.
“Is not in discussions with Revolution Medicines,” AbbVie told Reuters. The statement came hours after Wall Street Journal reports sent both stocks soaring.
AbbVie stock dropped 1% in extended trading. Shares had closed 4% higher during the regular session on buyout speculation.
Revolution Medicines stock plummeted 11.5% after the denial. The cancer drug developer had surged nearly 30% to a $20 billion market value.
AbbVie Cuts 2025 Profit Outlook
AbbVie separately slashed its 2025 earnings forecast Wednesday. The company cited a $1.3 billion fourth-quarter charge for the revision.
The drugmaker now expects adjusted earnings of $9.90 to $9.94 per share. Previous guidance projected $10.61 to $10.65 per share.
The charge stems from in-process research and development expenses. This marks a substantial reduction to profitability expectations.
AbbVie has invested over $20 billion in acquisitions since 2023. The spending aims to replace revenue lost from Humira’s patent expiration.
The company’s flagship rheumatoid arthritis drug previously generated massive sales. Patent loss forced AbbVie to seek growth elsewhere.
Revolution Medicines Deal Speculation
Wall Street Journal sources claimed multiple buyers pursued Revolution Medicines. Reports suggested AbbVie held advanced acquisition talks.
Revolution Medicines carries a market value around $20 billion. A deal with typical premiums could have exceeded that figure.
The biotech specializes in RAS-targeting cancer drugs. These experimental treatments focus on lung cancer and pancreatic cancer.
Revolution Medicines’s pipeline remains in development stages. Some drug candidates haven’t entered human testing yet.
Pharmaceutical companies have chased RAS inhibitors for decades. The protein’s cancer role makes it highly valuable.
AbbVie previously bought ImmunoGen for $10 billion in 2024. The company paid $21 billion for Pharmacyclics in 2015.
The drugmaker earns half its revenue from immune treatments. Products address psoriatic arthritis and Crohn’s disease.
AbbVie maintains a market value above $400 billion. Strategy emphasizes acquiring long-term growth technologies.
Revolution Medicines declined comment on the speculation. Company policy prevents addressing rumors.
A source told the Journal no final deal existed. Another potential suitor may pursue Revolution Medicines.
