AbbVie (ABBV) Stock Plunges After Denying Revolution Medicines Acquisition Rumors

Another day, another 'strategic rumor' evaporates—leaving shareholders holding the bag.

AbbVie's market value took a sharp haircut today as the pharmaceutical giant publicly shot down swirling reports of a potential takeover of Revolution Medicines. The denial sent ABBV shares tumbling, proving once again that Wall Street's rumor mill can be more potent—and damaging—than any actual corporate action.

The High Cost of Whisper Numbers

Traders had been betting on a big, headline-grabbing deal. The speculative frenzy pushed the stock on hopes of expanded oncology pipelines and market dominance. Then, with a terse statement, AbbVie pulled the plug. No deal. No talks. Just a sudden vacuum where bullish sentiment used to be.

The immediate sell-off was a classic case of 'buy the rumor, sell the news'—except the news was that there was no news. It's the financial equivalent of a sugar crash.

Biotech's Volatility Playbook

This isn't just a pharma story—it's a liquidity story. When major M&A speculation hits, capital floods in, seeking a quick premium. The moment the narrative cracks, that capital flees even faster, searching for the next narrative to pump. Sound familiar? It's the same herd mentality that drives momentum swings in crypto, just with more lab coats and slightly fewer memes.

In traditional markets or digital asset markets, one truth holds: price often trades on future stories, not present fundamentals. Today, AbbVie's story changed.

The Cynical Take

Let's be real—this is how the game is played. A leak or a 'source' fuels a run-up, smart money takes profits, the official denial triggers the retail sell-off, and then the cycle resets. It's a costly form of entertainment for the average investor, but hey, it keeps the brokers in business.

Final thought: In an era where decentralized protocols execute with code-based certainty, the old-world market's reliance on he-said-she-said denials feels almost quaint. Trust, but verify? In trad-fi, sometimes you can't even verify who to trust.

TLDR

• AbbVie denied reports it is in advanced talks to acquire Revolution Medicines, stating it “is not in discussions” with the cancer-drug developer
• Revolution Medicines shares dropped 11.5% in extended trading after the denial, following a nearly 30% gain during regular trading
• The Wall Street Journal had reported AbbVie was pursuing Revolution Medicines, which has a market value around $20 billion
• AbbVie separately cut its 2025 profit forecast to $9.90-$9.94 per share from $10.61-$10.65, citing a $1.3 billion fourth-quarter charge
• Revolution Medicines develops experimental drugs targeting RAS, a molecular driver in lung cancer, pancreatic cancer and other tumors

AbbVie issued a direct denial Wednesday evening regarding reported acquisition talks with cancer-drug biotech Revolution Medicines. The statement came hours after the Wall Street Journal reported the drugmaker was in advanced discussions to buy the company.

AbbVie is in “advanced” talks to purchase Revolution Medicines, a cancer focused biotech, in a deal that could be worth more than $20 billion, according to a report in the Wall Street Journal, citing sources https://t.co/gvssCIRJwJ

— Bloomberg (@business) January 7, 2026

“Is not in discussions with Revolution Medicines,” AbbVie said in an emailed statement to Reuters. The denial sent Revolution Medicines shares down 11.5% in extended trading.

Earlier in the day, Revolution Medicines had surged nearly 30% based on the acquisition reports. The stock closed with a market value around $20 billion.

AbbVie Inc., ABBV

AbbVie shares fell 1% in extended trading after the denial. The stock had closed 4% higher during regular trading hours.

The Journal’s report suggested multiple suitors had shown interest in Revolution Medicines. No deal value was included in the initial reporting.

Including a typical acquisition premium, Revolution Medicines could have been valued at $20 billion or more. The company declined to comment on the reports, citing company policy on rumors and speculation.

Profit Forecast Cut

AbbVie separately announced a reduction to its 2025 profit forecast. The company flagged an expected $1.3 billion charge tied to in-process research and development expenses in the fourth quarter.

The drugmaker now expects full-year adjusted earnings per share of $9.90 to $9.94. This compares to its prior range of $10.61 to $10.65.

The charge represents a hit to the company’s near-term financial outlook. AbbVie has been actively pursuing acquisitions to offset revenue losses.

Recent Acquisition Activity

AbbVie has spent more than $20 billion on acquisitions since 2023. The buying spree comes as its flagship rheumatoid arthritis treatment Humira lost patent protection.

The company bought Pharmacyclics and its blood-cancer treatment for $21 billion in 2015. More recently, AbbVie acquired ImmunoGen and its ovarian-cancer treatment for $10 billion in 2024.

AbbVie generates about half its yearly revenue from immune condition treatments. These include drugs for psoriatic arthritis and Crohn’s disease.

Revolution Medicines focuses on drugs targeting RAS. This molecular driver plays a role in many cancers including lung and pancreatic tumors.

The biotech’s experimental drugs remain in development. Some haven’t entered human testing yet, according to the company’s website.

Drug researchers have pursued ways to inhibit RAS for decades. The target’s important role in cancer makes it valuable for drugmakers.

Revolution Medicines’s RAS research stems from work by Harvard scientist Gregory Verdine. He helped establish Warp Drive Bio, which found molecules attacking the target by sequencing bacterial genomes.

A person familiar with the matter told the Journal that a deal hadn’t been finalized. Another suitor may still prevail in pursuing Revolution Medicines.

AbbVie has a market value above $400 billion. The company has said it prefers acquiring mechanisms and technologies that can power growth over the next decade rather than proven assets alone.