What Is the Intent Behind AbbVie's Recent Acquisition Spree?

AbbVie ABBV has been on an acquisition spree in the past couple of years to bolster the early-stage pipeline, which should drive long-term growth. Though immunology remains its core area, the company is also signing some early-stage deals across various other therapeutic areas, including oncology and neuroscience.

Earlier this week, AbbVie entered into a definitive agreement to acquire private neuroscience biotech Gilgamesh Pharmaceuticals’ lead pipeline drug for a total deal value of nearly $1.2 billion. Once closed, the company will add bretisilocin — a novel, psychedelic compound being developed in a mid-stage study for major depressive disorder (MDD) — to its neuroscience pipeline.

Since the beginning of last year, the company has signed over 30 M&A deals, including promising technologies and innovative mechanisms that can increase the standard of care across various therapeutic areas. A key deal was the April 2025 licensing agreement with Denmark’s Gubra rights to develop a long-acting amylin analog, marking its foray into the obesity space. In August 2025, AbbVie completed the acquisition of Capstan Therapeutics, which added a potential first-in-class in vivo tLNP anti-CD19 CAR-T therapy, strengthening its immunology pipeline.

Such transactions have not only broadened AbbVie’s therapeutic footprint but also diversified its pipeline across multiple modalities. The augmented pipeline now includes next-generation immunology candidates, bispecifics, antibody-drug conjugates and innovative therapies for neuropsychiatric and neurodegenerative disorders.

Focus on M&A in 2025

While broader macroeconomic concerns, including Trump-era tariffs and leadership shifts at the FDA, have weighed on deal-making this year, Big Pharma continues to pursue strategic assets in key growth areas.

One of the biggest deals signed this year was by J&J JNJ, after it completed the $14.6 billion acquisition of Intra-Cellular Therapies to strengthen its neuroscience franchise. After closing the deal in April, J&J added Intra-Cellular’s sole marketed drug Caplyta, which is approved for two indications — schizophrenia and bipolar depression. The deal is a strategic fit for J&J’s existing neuroscience franchise, which includes the antipsychotic drug Invega Sustenna and the depression treatment Spravato.

Last month, Eli Lilly LLY completed the acquisition of cardiology-focused Verve Therapeutics in a deal valued at up to $1.3 billion. This transaction marked LLY’s third targeted M&A deal this year. Earlier in January, it signed a $2.5 billion deal for Scorpion Therapeutics’ experimental oncology drug. In May, Lilly agreed to acquire SiteOne Therapeutics for $1 billion to strengthen its neuroscience pipeline. Such deals suggest that LLY’s M&A strategy is selective, focusing on long-term strength across therapeutic areas beyond its dominant presence in obesity.

ABBV’s Price Performance, Valuation and Estimates

Shares of AbbVie have outperformed the industry year to date, as seen in the chart below.

Image Source: Zacks Investment Research

From a valuation standpoint, AbbVie is trading at a premium to the industry. Based on the price/earnings (P/E) ratio, the company’s shares currently trade at 15.41 times forward earnings, slightly higher than its industry’s average of 14.79. The stock is also trading above its five-year mean of 12.73.

Image Source: Zacks Investment Research

EPS estimates for 2025 and 2026 have increased in the past 30 days.

Image Source: Zacks Investment Research

AbbVie currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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