AbbVie (ABBV.US) Expands UK Oxford R&D Facility, Betting on Innovation in Immunology, Neuroscience, and Oncology Drugs

U.S. pharmaceutical company AbbVie (ABBV.US) said on Wednesday that it has expanded its research and development facility in Oxford, UK, as part of an investment plan exceeding GBP120 million (approximately US$161 million). The investment comes several months after the U.S. and UK finalized an agreement aimed at raising UK drug prices in line with U.S. President Trump's latest U.S. drug pricing policy. The new facility, called "AbbVie Oxford," covers 12,000 square feet and will expand the company's research capabilities in immunology, neuroscience, and oncology. The facility builds on the technological capabilities acquired through the 2022 acquisition of Oxford-based biotechnology company DJS Antibodies. The investment will support research focused on identifying new disease targets and combination therapies in areas with significant unmet medical need. AbbVie collaborates with more than 100 UK universities and research institutions annually and is expanding its partnerships with academic institutions, including the University of Oxford. One collaborative study between AbbVie and the University of Oxford aims to understand how certain patients with inflammatory diseases respond to treatment throughout the course of their illness, to help guide future drug development. In addition, AbbVie employs more than 1,100 people across its operations in Oxford, Maidenhead, and Marlow in the UK. AbbVie's financial results released at the end of last month showed that, driven by higher sales of immunology and neuroscience drugs, the company's third-quarter revenue rose 10% year-on-year to US$17.4 billion, above analysts' expectations of US$17.32 billion. Adjusted earnings per share were US$3.82, above analysts' expectations of US$3.73. Humira, once the world's top-selling drug, saw third-quarter revenue fall to US$683 million, down 31.2% year-on-year (on a reported basis), continuing to face pressure from biosimilar competition. However, the immunology segment did not shrink as a result, but successfully completed the transition from older to newer products the segment's total revenue reached US$9.17 billion, up 16.3% year-on-year. This was mainly driven by strong volume growth from two successor drugs: Skyrizi and Rinvoq, which brought in US$5.78 billion and US$2.71 billion, respectively, together contributing nearly half of the company's total revenue. In addition, the neuroscience portfolio's revenue grew 19.4% to US$3.39 billion; oncology revenue edged up 0.8%; and aesthetics revenue declined 1.4%. AbbVie currently expects full-year adjusted earnings per share of US$13.95 to US$13.99, above its previous guidance of US$13.76 to US$13.96 and above analysts' expectations of US$13.91.