AbbVie Shares Tumble 1.8% as $1.3B IPR&D Charge and Dashed Deal Hopes Send Stock to 58th in Trading Rank

Market Snapshot

AbbVie (ABBV) shares fell 1.81% on January 9, 2026, closing at $224.17, as the stock traded with a 31.1% decline in volume to $1.46 billion, ranking 58th in trading activity. The drop followed a combination of earnings guidance cuts, a $1.3 billion pre-tax charge tied to in-process research and development (IPR&D) expenses, and the denial of acquisition rumors with Revolution Medicines. The stock’s decline came after a brief rally earlier in the week driven by speculation of a potential $20 billion takeover, which unraveled following AbbVie’s public rejection of the deal. The company also trimmed its 2025 adjusted EPS forecast to $9.90–$9.94 from $10.61–$10.65, citing the IPR&D charge and milestone expenses, which reduced its Q4 adjusted EPS guidance to $2.61–$2.65. Analysts had previously projected $3.35 per share, highlighting the gap between management’s expectations and market forecasts.

Key Drivers

The primary catalyst for AbbVie’s stock decline was the $1.3 billion pre-tax charge related to acquired IPR&D and milestone expenses, which significantly dented its fourth-quarter 2025 earnings. This charge, disclosed in an SEC filing, reduced both GAAP and adjusted earnings per share by approximately $0.71, pushing the company’s Q4 adjusted EPS guidance below analyst expectations. The charge follows a $2.7 billion hit in Q3 2025 from similar expenses, signaling ongoing financial pressure from recent acquisition-driven research initiatives. AbbVie’s strategy of acquiring late-stage drug candidates and licensing programs has become a double-edged sword, with upfront costs and milestone payments now weighing on near-term profitability. Investors reacted negatively to the revised guidance, as the charges eroded confidence in the company’s ability to maintain its historical growth trajectory.

The stock’s volatility was further amplified by the collapse of takeover speculation involving Revolution Medicines, a biotech firm specializing in oncology therapies. AbbVie had previously sparked a 30% surge in Revolution’s shares on rumors of advanced acquisition talks, but a direct denial from the company—citing “no discussions”—triggered a 11.5% post-market drop in Revolution’s stock and a 4% decline in AbbVie’s shares. The failed deal highlighted AbbVie’s aggressive acquisition strategy to offset revenue losses from expiring patents, particularly for its flagship drug Humira. While the company has spent over $20 billion on acquisitions since 2023, the lack of clarity around future deals and the associated costs has created uncertainty for investors.

Compounding the sell-off was a downgrade from Wolfe Research, which moved AbbVie from “Outperform” to “Peer Perform,” arguing that the stock had already priced in strong growth from its immunology portfolio (e.g., Skyrizi and Rinvoq). The analyst’s note underscored the challenge of sustaining momentum in a sector where regulatory risks and competitive pressures are rising. AbbVie’s financial metrics, including a declining operating margin and a high debt-to-equity ratio, further reinforced concerns about its leverage and liquidity constraints. While the company’s market capitalization of $412.54 billion reflects its status as a pharmaceutical industry leader, the combination of one-time charges and strategic ambiguity has shifted sentiment toward caution.

Looking ahead, AbbVie’s February 4 earnings report will be critical in determining the stock’s trajectory. Management’s guidance for 2026 and updates on capital allocation strategies will need to address ongoing challenges from IPR&D expenses and the need for new revenue streams. For now, the stock remains vulnerable to further volatility as investors weigh the balance between long-term growth potential and near-term financial headwinds.