AbbVie has revised downward its full-year profit outlook after warning that it expects to take a USD 2.7 billion charge in the third quarter for in-process research and development (IPR&D) expenses. The company plans to reduce its adjusted earnings per share guidance to a range of USD 10.38 to USD 10.58, down from its prior forecast of USD 11.88 to USD 12.08.

In its announcement, AbbVie noted that the significant charge arises from collaborations, licensing agreements or asset acquisitions, though it did not give details on the specific deals. As a result, it also lowered its third-quarter adjusted EPS estimate to between USD 1.74 and USD 1.78—a figure well below analysts’ expectations of around USD 3.27.

The company’s move signals the financial impact of ramped-up R&D investments, even as it pushes forward with its pipeline. AbbVie is in the midst of broadening its manufacturing capacity, including a new USD 195 million plant in North Chicago targeting immunology, oncology and neurology drugs, expected to be fully operational by 2027.

AbbVie has been leaning heavily on its newer immunology medicines, Skyrizi and Rinvoq, to counter the declining revenues from Humira, which is facing increased biosimilar competition. These strategic shifts, along with increased R&D spending, appear to be reshaping the company’s near-term financial profile.

The revision comes amid broader market expectations that biopharma firms with heavy investment in innovation must balance growth ambitions with fiscal discipline. Investors will be watching how AbbVie manages its pipeline, cost structure and continued transitions as it navigates this period of adjustment.