AbbVie Inc stock fell 0.5% early Monday, after the biotechnology company lowered its first-quarter guidance to reflect the diluting impact of its closing of its ImmunoGen acquisition.
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It said it now expects first-quarter earnings per share to range from $2.26 to $2.30, down from previous guidance of $2.30 to $2.34, including the dilutive impact of 4 cents per share from the Immunogen deal.
AbbVie announced a $10.1 billion cash deal for Immunogen in November, which includes ImmunoGen's antibody drug (ADC) Elahere, which has been approved as a treatment for ovarian cancer.
Elahere is the first and only ADC to receive regulatory approval for ovarian cancer. About 19,680 women in the United States will receive a new diagnosis of ovarian cancer this year, according to estimates from the American Cancer Society.
“ADC's ImmunoGen follow-on pipeline further builds on AbbVie's existing solid tumor pipeline of novel targeted therapies and next-generation immuno-oncology assets, which have the potential to create new therapeutic possibilities across multiple solid tumors and hematologic malignancies,” AbbVie said in a statement.
The company reiterated that it expects full-year adjusted EPS of $11.05 to $11.25, which includes a 42 cents per share dilutive impact from the ImmunoGen deal and the pending closing of Cerevel Therapeutics Holdings Inc. CERE,
AbbVie announced its plan to buy Cerevel in December for $8.7 billion, saying Cerevel's “robust” neuroscience pipeline adds drugs that could change the standard of care in psychiatric and neurological diseases.
AbbVie stock is up 14.5% in the past 12 months, while the S&P 500 SPX is up.
It gained 23%.
