AbbVie reports $2.7 billion IPR&D expense to impact Q3 earnings

AbbVie Inc. (NYSE: ABBV) announced that its third quarter 2025 earnings will include $2.7 billion in acquired intellectual property research and development and milestones expense on a pre-tax basis. The pharmaceutical company said this expense will reduce both GAAP diluted earnings per share and adjusted non-GAAP diluted earnings per share by $1.50.

The company stated that results for the quarter ended September 30, 2025 have not been finalized and remain subject to financial statement closing procedures. AbbVie noted that final results may differ from these preliminary estimates.

The acquired IPR&D and milestones expense stems from collaborations, licensing agreements, and other asset acquisitions. AbbVie explained that it does not forecast such expenses due to uncertainty regarding the timing and occurrence of these transactions.

The company updated its full-year 2025 adjusted diluted earnings per share guidance to a range of $10.38 to $10.58, which includes the impact of the third quarter IPR&D expense. The guidance previously announced on July 31, 2025 had excluded potential IPR&D and milestones expenses beyond the second quarter of 2025.

For the third quarter 2025 specifically, AbbVie provided adjusted diluted earnings per share guidance of $1.74 to $1.78, incorporating the impact of the acquired IPR&D and milestones expense.

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