AbbVie Shares Surge 6.36% on Strong Q3 Results and Strategic Aliada Acquisition

On October 30th, AbbVie (ABBV) experienced a significant rise, with shares seeing an increase of 6.36% during the day. This positive momentum is attributed to the company's robust third-quarter financial results. AbbVie reported revenue of $14.46 billion, marking a 3.8% increase from the previous year and surpassing market expectations of $14.278 billion. Adjusted earnings per share also exceeded forecasts, coming in at $3 compared to the anticipated $2.91. Additionally, AbbVie raised its adjusted earnings per share guidance for 2024 to between $10.90 and $10.94, up from the prior range of $10.67 to $10.87, and above the market projection of $10.85.

Further strengthening its strategic position, AbbVie has announced a definitive agreement to acquire Aliada Therapeutics. This acquisition, valued at $1.4 billion in cash, reflects AbbVie's focus on expanding its neurological treatment portfolio. The deal is targeted for completion in the fourth quarter of 2024, pending regulatory approvals and customary closing conditions.

Aliada is recognized for its pioneering work with its blood-brain barrier (BBB) penetration technology aimed at addressing challenging central nervous system disorders. The biotech's primary investigational asset, ALIA-1758, is an anti-glycosylation amyloid beta (3pE-Aβ) antibody, developed to treat Alzheimer's disease. This candidate is currently undergoing Phase 1 clinical trials to assess its safety and tolerability in healthy participants.

AbbVie has previously shifted its focus in Alzheimer's treatment strategies, discontinuing the development of its monoclonal antibody ABBV-916, opting instead to explore alternative approaches including combination therapies. Both ABBV-916 and ALIA-1758 target the 3pE-Aβ protein, a hallmark of Alzheimer's pathology. This acquisition is expected to bolster AbbVie's capabilities in delivering next-generation therapies for neurological diseases.

Roopal Thakkar, AbbVie's Executive Vice President of Research and Development, emphasized the significance of this acquisition by stating, "Neuroscience is a key growth area for us, and we are committed to advancing innovations that meet the unmet needs of patients suffering from debilitating neurological diseases like Alzheimer's." The combination of Aliada's novel BBB penetration technology and AbbVie's development resources aims to enhance the group's ability to address the challenges in CNS drug delivery.