⚠ The Next Replacement Has to Be BoughtModerate threat

AbbVie (ABBV) — threat to the moat

AbbVie is buying its next generation of drugs at full price, and one of the largest purchases has already been written down by $4.5 billion.

Skyrizi and Rinvoq came from AbbVie's own pipeline and earlier deals; the next generation is being bought. AbbVie recorded $5,016 million of acquired in-process research and milestones in 2025, against $778 million in 20231, and agreed in 2026 to buy Apogee Therapeutics for about $10.9 billion2.

Acquired IPR&D and milestones ($M)697202277820232,75720245,0162025AbbVie Forms 10-K FY2024 and FY2025
Research spending by purchase is rising.

Buying late-stage science is expensive and uncertain. AbbVie took a $4.5 billion impairment in 2024 on emraclidine, a schizophrenia drug from the Cerevel acquisition, after its Phase 2 trials did not meet their primary endpoint3.

AbbVie's pipeline of about 90 compounds, devices or indications, with about 60 in mid- and late-stage development4, is large. The question is whether it holds a successor on the scale of Skyrizi.

The pattern is visible in the deal history. AbbVie bought Pharmacyclics for about $20.8 billion in 20155, Allergan for $64,084 million in 20206, ImmunoGen for $9.8 billion and Cerevel for $8.7 billion in 20247, and agreed to buy Apogee for about $10.9 billion in 20268. Each was a bet that buying was faster than discovering.

The warning would be continued large acquired IPR&D charges without new blockbusters approved. Five years of that pattern before 2033 would mean the replacement is being attempted at full price with no guarantee.

References
  1. ReportedAbbVie recorded $5,016 million of acquired in-process research and milestones in 2025, against $778 million in 2023, and agreed in 2026 to buy Apogee Therapeutics for about $10.9 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 ↗
  2. ReportedAbbVie recorded $5,016 million of acquired in-process research and milestones in 2025, against $778 million in 2023, and agreed in 2026 to buy Apogee Therapeutics for about $10.9 billion.
    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 ↗
  3. ReportedAbbVie took a $4.5 billion impairment in 2024 on emraclidine, a schizophrenia drug from the Cerevel acquisition, after its Phase 2 trials did not meet their primary endpoint.
    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 ↗
  4. ReportedAbbVie's pipeline of about 90 compounds, devices or indications, with about 60 in mid- and late-stage development, is large.
    AbbVie Form 10-K for fiscal 2025 - Item 1 business: products, customers, competition and research. — FY2025 · publ. 20 February 2026 · source ↗
  5. ReportedAbbVie bought Pharmacyclics for about $20.8 billion in 2015, Allergan for $64,084 million in 2020, ImmunoGen for $9.8 billion and Cerevel for $8.7 billion in 2024, and agreed to buy Apogee for about $10.9 billion in 2026.
    AbbVie Form 10-K for fiscal 2018 - Humira revenue for 2016-2018, the Pharmacyclics and Stemcentrx acquisitions, and selected data for 2014-2018. — FY2018 · publ. February 2019 · source ↗
  6. ReportedAbbVie bought Pharmacyclics for about $20.8 billion in 2015, Allergan for $64,084 million in 2020, ImmunoGen for $9.8 billion and Cerevel for $8.7 billion in 2024, and agreed to buy Apogee for about $10.9 billion in 2026.
    AbbVie Form 10-K for fiscal 2020 - the Allergan acquisition and its total consideration. — FY2020 · publ. February 2021 · source ↗
  7. ReportedAbbVie bought Pharmacyclics for about $20.8 billion in 2015, Allergan for $64,084 million in 2020, ImmunoGen for $9.8 billion and Cerevel for $8.7 billion in 2024, and agreed to buy Apogee for about $10.9 billion in 2026.
    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 ↗
  8. ReportedAbbVie bought Pharmacyclics for about $20.8 billion in 2015, Allergan for $64,084 million in 2020, ImmunoGen for $9.8 billion and Cerevel for $8.7 billion in 2024, and agreed to buy Apogee for about $10.9 billion in 2026.
    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