Key Takeaways:
- AbbVie agreed to acquire Apogee Therapeutics for $10.9 billion
- Deal adds zumilokibart and respiratory pipeline to AbbVie's portfolio
- Acquisition supports dividend growth as Humira revenues continue declining
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AbbVie buys Apogee for $10.9 billion to strengthen drug pipeline
AbbVie Inc. agreed to buy Apogee Therapeutics for $10.9 billion, adding late-stage dermatology and respiratory drugs to its pipeline.
"This acquisition strengthens our immunology portfolio and expands our presence in respiratory medicine," an AbbVie spokesperson said in a statement.
The deal brings zumilokibart, a late-stage treatment for atopic dermatitis, and a pipeline of respiratory candidates. AbbVie's immunology segment generated $6.26 billion in Q1 2025, or 53.1 percent of total revenue of $13.34 billion, led by Skyrizi at $3.43 billion and Rinvoq at $1.72 billion.
The acquisition comes as AbbVie navigates the aftermath of Humira's 2023 patent loss. Management expects combined Skyrizi and Rinvoq sales to exceed $31 billion by 2027. The company raised its full-year 2025 adjusted EPS guidance to $12.09-$12.29 in April.
AbbVie, which inherited Dividend King status from its 2013 spin-off from Abbott Laboratories, has increased its dividend annually since the separation. The stock yields 2.7 percent, with dividends reaching $1.64 per share in 2025, up from $0.40 in 2013.
The Apogee deal is the latest in a series of pipeline investments. AbbVie also signed a $350 million licensing agreement with Gubra A/S for a weight management drug and has roughly 90 products in development. The aesthetics portfolio, including Botox Cosmetic, declined 11.7 percent in Q1 to $1.10 billion, though Botox remains a profitable off-patent brand.
AbbVie shares have returned 446.9 percent since 2013, far outpacing peers including Merck at 92.2 percent, Johnson & Johnson at 130.8 percent and Pfizer at 2.1 percent. The stock trades above $160, a level technical analysts identify as key support.
The $10.9 billion Apogee acquisition shows AbbVie's strategy of using M&A to replenish its pipeline ahead of future patent expirations. Investors will watch Q2 2025 earnings on July 31 for updated guidance on how the deal affects near-term financials.
This article is for informational purposes only and does not constitute investment advice.
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