ABBV.US expands Oxford R&D facility to bet on immunology, neuroscience and oncology drug innovation

The Zhitong Finance App learned that the US pharmaceutical company ABBV.US (ABBV.US) said on Wednesday that as part of an investment plan of more than 120 million pounds (about 161 million US dollars), the company has expanded its research and development facilities in Oxford, England. The investment comes after the US and UK finalized an agreement a few months ago. The agreement aims to raise UK drug prices in accordance with the latest US drug pricing policy proposed by US President Trump.

According to reports, the new facility, called “AbbVie Oxford,” covers an area of 12,000 square feet and will expand the company's research capabilities in the fields of immunology, neuroscience, and oncology. The facility was built on technical capabilities acquired following the acquisition of Oxford-based biotech company DJS Antibodies in 2022. The investment will support relevant research, which focuses on identifying new disease targets and combination therapies in areas where there are significant unmet medical needs.

AbbVie collaborates with more than 100 universities and research institutions in the UK every year, and is expanding partnerships with academic institutions, including the University of Oxford. A collaborative study between AbbVie and the University of Oxford aims to understand how patients with certain inflammatory diseases respond to treatment throughout the course of their illness to help guide future drug development. Additionally, AbbVie's operations in Oxford, Maidenhead and Marlow in the UK employ more than 1,100 people.

According to the financial report released by AbbVie at the end of last month, driven by increased sales of immunology and neuroscience drugs, the company's third-quarter revenue increased 10% year-on-year to US$17.4 billion, higher than analysts' expectations of US$17.32 billion. Adjusted earnings per share were $3.82, higher than analysts' expectations of $3.73.

The revenue of Humira (Humira), the former “global drug king”, fell to US$683 million in the third quarter, down 31.2% year on year (according to the report), and continues to face competitive pressure for biosimilar drugs. However, the immunology sector did not shrink as a result; instead, it completed a smooth handover of new and old products — the overall revenue of the sector reached US$9.17 billion, up 16.3% year over year. This was mainly due to the strong volume of the two new drugs that took over: Skyrizi (rifutol) and Rinvoq (Rinvoq) recorded $5.78 billion and $2.71 billion respectively, which together contributed nearly half of the company's total revenue. In addition, neuroscience portfolio revenue increased 19.4% to US$3.39 billion; oncology business revenue increased slightly by 0.8%; and medical and aesthetic business revenue decreased by 1.4%.

AbbVie currently expects full-year adjusted earnings of $13.95 to $13.99 per share, higher than previous guidance of $13.76 to $13.96, and higher than analysts' expectations of $13.91.