⚠ $7.4 Billion of Amortisation a YearModerate threat

AbbVie (ABBV) — threat to the moat

AbbVie charges about $7.4 billion a year against earnings for drugs it bought, and writes some of them down.

AbbVie's income statement carries its acquisition history. Amortisation of intangible assets was $7,946 million in 2023, $7,622 million in 2024 and $7,377 million in 20251. Impairments of intangibles added $4,229 million, $4,476 million and $847 million in those years2.

Intangible charges ($M)7,946Amortisation 20237,377Amortisation 20254,229Impairment 20234,476Impairment 2024847Impairment 2025AbbVie Form 10-K FY2025
The cost of buying the portfolio.

These are real costs of real purchases. The Allergan acquisition in 2020 had total consideration of $64,084 million3, and the ImmunoGen and Cerevel deals in 2024 cost $9.8 billion and $8.7 billion4.

Impairments are the danger within the amortisation. Each one means an acquired asset was worth less than AbbVie paid; the $4.5 billion charge on emraclidine in 20245 is the largest recent example.

The Allergan purchase is the largest source. AbbVie paid $120.30 in cash plus 0.8660 of an AbbVie share for each Allergan share, $39,675 million in cash and $23,979 million in stock6. Much of that price became intangible assets that are amortised over the lives of Allergan's products, which is why the charge will decline gradually rather than end.

The annual impairment charge is the number to watch. Charges above $2 billion in a year would say recent purchases are not delivering.

References
  1. ReportedAmortisation of intangible assets was $7,946 million in 2023, $7,622 million in 2024 and $7,377 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. ReportedImpairments of intangibles added $4,229 million, $4,476 million and $847 million in those years.
    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. ReportedThe Allergan acquisition in 2020 had total consideration of $64,084 million, and the ImmunoGen and Cerevel deals in 2024 cost $9.8 billion and $8.7 billion.
    AbbVie Form 10-K for fiscal 2020 - the Allergan acquisition and its total consideration. — FY2020 · publ. February 2021 · source ↗
  4. ReportedThe Allergan acquisition in 2020 had total consideration of $64,084 million, and the ImmunoGen and Cerevel deals in 2024 cost $9.8 billion and $8.7 billion.
    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. ReportedEach one means an acquired asset was worth less than AbbVie paid; the $4.5 billion charge on emraclidine in 2024 is the largest recent example.
    AbbVie Form 10-K for fiscal 2024 - product revenue for 2022-2024, product concentration, the CEO succession and the emraclidine impairment. — FY2024 · publ. February 2025 · source ↗
  6. ReportedAbbVie paid $120.30 in cash plus 0.8660 of an AbbVie share for each Allergan share, $39,675 million in cash and $23,979 million in stock.
    AbbVie Form 10-K for fiscal 2020 - the Allergan acquisition and its total consideration. — FY2020 · publ. February 2021 · source ↗
Sources
Generated September 25, 2026