Acquired IPR&D: $5.0 Billion in One YearNarrow moat

AbbVie (ABBV) — moat facet

AbbVie spent $5.0 billion in 2025 on early science it expensed immediately, and its earnings guidance falls every time it signs another deal.

AbbVie's research budget now includes a large line for science it buys before it works. Acquired in-process research and milestones expense was $778 million in 2023, $2,757 million in 2024 and $5,016 million in 20251, of which upfront charges were $4,808 million in 20252. That reduced 2025 earnings per share by $2.763.

2025-2026 deal upfronts ($M)Capstan2,100Gilgamesh906Ichnos Glenmark700RemeGen (2026)650Gubra350ADARx335AbbVie Form 10-K FY2025
Many small bets on the 2030s.

The 2025 deals were many and varied. AbbVie paid $2.1 billion for Capstan, an in-vivo cell therapy developer; $906 million for Gilgamesh and its psychiatric drug bretisilocin; $700 million upfront for an antibody from Ichnos Glenmark; $350 million upfront for an obesity programme from Gubra; and $335 million for an option with ADARx4. In early 2026 it agreed $650 million upfront for RemeGen's RC1485.

Each is a small bet on a programme years from approval. Together they form the replacement pipeline for the 2030s, bought in pieces.

The spending moves AbbVie's guidance every quarter. The 2026 adjusted earnings guidance started at $14.37 to $14.576 and was cut by acquired research charges to $13.96 to $14.16 in April7 and to $13.91 to $14.11 in July8, because AbbVie's guidance excludes deals not yet signed.

The deals keep coming. AbbVie recorded $744 million of acquired research in the first quarter of 2026 and $291 million in the second910, and bought Nimble Therapeutics in January 2025 for $288 million11. Each quarter's charge is announced in advance through an update to earnings guidance, a practice that makes the spending transparent and routine.

This is the replacement machine running on purchase. The figure that tests it is acquired research spending against approvals: the 2025 bets need to produce at least one large drug by the early 2030s for the spending to have been worth it.

Moat trajectory: Widening

Charges rose from $0.8bn in 2023 to $5.0bn in 2025.

The number that tests this moat
Reported
Acquired IPR&D and milestones, first half
$1,035M (H1 2026); $5,016M in 2025

Spending on bought science; a return to $5bn a year without approvals would mean the replacement is costly and slow.

Source: AbbVie Q2 2026 results release ↗
⚠ Threats to the moat
⚠ THREAT 01
Guidance Cut by Every Deal
AbbVie's 2026 earnings guidance has been cut four times, each time by a deal to buy early-stage science.
References
  1. ReportedAcquired in-process research and milestones expense was $778 million in 2023, $2,757 million in 2024 and $5,016 million in 2025, of which upfront charges were $4,808 million in 2025.
    AbbVie Form 10-K for fiscal 2025 - financial statements and notes: earnings, cash flow, balance sheet, acquisitions and contingent consideration. — FY2025 · publ. 20 February 2026 · source ↗
  2. ReportedAcquired in-process research and milestones expense was $778 million in 2023, $2,757 million in 2024 and $5,016 million in 2025, of which upfront charges were $4,808 million in 2025.
    AbbVie Form 10-K for fiscal 2025 - financial statements and notes: earnings, cash flow, balance sheet, acquisitions and contingent consideration. — FY2025 · publ. 20 February 2026 · source ↗
  3. ReportedThat reduced 2025 earnings per share by $2.76.
    AbbVie fourth-quarter and full-year 2025 results release, Form 8-K exhibit 99.1 - adjusted EPS and 2026 guidance. — FY2025 · publ. 4 February 2026 · source ↗
  4. ReportedAbbVie paid $2.1 billion for Capstan, an in-vivo cell therapy developer; $906 million for Gilgamesh and its psychiatric drug bretisilocin; $700 million upfront for an antibody from Ichnos Glenmark; $350 million upfront for an obesity programme from Gubra; and $335 million for an option with ADARx.
    AbbVie Form 10-K for fiscal 2025 - financial statements and notes: earnings, cash flow, balance sheet, acquisitions and contingent consideration. — FY2025 · publ. 20 February 2026 · source ↗
  5. ReportedIn early 2026 it agreed $650 million upfront for RemeGen's RC148.
    AbbVie Form 10-K for fiscal 2025 - financial statements and notes: earnings, cash flow, balance sheet, acquisitions and contingent consideration. — FY2025 · publ. 20 February 2026 · source ↗
  6. ReportedThe 2026 adjusted earnings guidance started at $14.37 to $14.57 and was cut by acquired research charges to $13.96 to $14.16 in April and to $13.91 to $14.11 in July, because AbbVie's guidance excludes deals not yet signed.
    AbbVie fourth-quarter and full-year 2025 results release, Form 8-K exhibit 99.1 - adjusted EPS and 2026 guidance. — FY2025 · publ. 4 February 2026 · source ↗
  7. ReportedThe 2026 adjusted earnings guidance started at $14.37 to $14.57 and was cut by acquired research charges to $13.96 to $14.16 in April and to $13.91 to $14.11 in July, because AbbVie's guidance excludes deals not yet signed.
    AbbVie Form 8-K exhibit 99.1, Q1 2026 acquired IPR&D and milestones guidance update. — Q1 2026 · publ. 3 April 2026 · source ↗
  8. ReportedThe 2026 adjusted earnings guidance started at $14.37 to $14.57 and was cut by acquired research charges to $13.96 to $14.16 in April and to $13.91 to $14.11 in July, because AbbVie's guidance excludes deals not yet signed.
    AbbVie Form 8-K exhibit 99.1, Q2 2026 acquired IPR&D and milestones guidance update. — Q2 2026 · publ. 6 July 2026 · source ↗
  9. ReportedAbbVie recorded $744 million of acquired research in the first quarter of 2026 and $291 million in the second, and bought Nimble Therapeutics in January 2025 for $288 million.
    AbbVie Form 8-K exhibit 99.1, Q1 2026 acquired IPR&D and milestones guidance update. — Q1 2026 · publ. 3 April 2026 · source ↗
  10. ReportedAbbVie recorded $744 million of acquired research in the first quarter of 2026 and $291 million in the second, and bought Nimble Therapeutics in January 2025 for $288 million.
    AbbVie Form 8-K exhibit 99.1, Q2 2026 acquired IPR&D and milestones guidance update. — Q2 2026 · publ. 6 July 2026 · source ↗
  11. ReportedAbbVie recorded $744 million of acquired research in the first quarter of 2026 and $291 million in the second, and bought Nimble Therapeutics in January 2025 for $288 million.
    AbbVie Form 10-Q for the quarter ended 30 June 2026 - product revenue, the balance sheet, cash flow and the Apogee agreement. — Q2 2026 · publ. 3 August 2026 · source ↗
Sources
Generated September 25, 2026