AbbVie trims annual profit forecast after expected $2.7 billion R&D hit

Core Viewpoint - AbbVie has lowered its annual profit forecast due to a $2.7 billion charge related to in-process research and development (IPR&D) expenses in Q3, impacting its adjusted earnings per share (EPS) expectations significantly [1][2]. Financial Performance - AbbVie now expects full-year adjusted EPS to be between $10.38 and $10.58, down from the previous range of $11.88 to $12.08, with analysts initially expecting $12.02 [2][3]. - The forecast for Q3 adjusted EPS is projected to be between $1.74 and $1.78, which is substantially lower than the analysts' estimate of $3.27 [4]. Research and Development - The IPR&D expenses may arise from collaborations, licensing deals, or asset purchases, but the company did not specify the exact nature of these expenses [2]. - AbbVie has indicated that the results for the quarter ending September 30 are not finalized and may differ from preliminary estimates [3]. Strategic Developments - AbbVie has initiated the construction of a new active pharmaceutical ingredient manufacturing plant in North Chicago, Illinois, with an investment of $195 million, expected to be operational by 2027 [4]. - The company is focusing on newer immunology drugs, Skyrizi and Rinvoq, to counteract declining sales from its arthritis treatment Humira, which is facing biosimilar competition in the U.S. [5]. Acquisitions and Investments - AbbVie has invested over $20 billion in acquisitions since the onset of biosimilar competition for Humira to strengthen its product pipeline [5].