ImmunoGen and Cerevel: $18.5 Billion in 2024Narrow moat

AbbVie (ABBV) — moat facet

AbbVie spent $18.5 billion on two companies in 2024; one drug is growing toward $1 billion and the other failed.

In 2024 AbbVie spent heavily to fill its pipeline. It bought ImmunoGen, maker of the ovarian cancer drug Elahere, in February 2024 for consideration of $9.8 billion1, and Cerevel Therapeutics, a neuroscience developer, in August 2024 for $8.7 billion2. Acquisitions of businesses, net of cash, were $17,493 million in 20243.

2024 acquisitions ($bn)9.8ImmunoGen8.7Cerevel4.5Emraclidine impairment0.69Elahere sales 2025AbbVie Forms 10-K FY2024 and FY2025
$18.5 billion spent, one drug growing.

The results are split. Elahere sold $479 million in 2024 and $690 million in 20254, and $211 million in the second quarter of 20265; management assumed $850 million for 20266. Cerevel's lead drug, emraclidine, failed in Phase 2 and was impaired by $4.5 billion7.

The oncology business these deals were meant to strengthen is barely growing. Oncology revenue was $6,555 million in 2024 and $6,655 million in 20258, and fell 1.5% in the second quarter of 20269, as Imbruvica declined.

The pattern is familiar in large pharmaceuticals: buy late-stage science at a premium because the internal pipeline cannot fill the gap in time. It works when the drug succeeds and costs dearly when it does not.

The prices were full. AbbVie paid $31.26 a share for ImmunoGen and $45.00 for Cerevel10, premiums typical of competitive auctions for late-stage assets. Management assumed Elahere sales of about $850 million in 202611, so the ImmunoGen purchase will take many years to earn back its price.

The two deals together are the test of AbbVie's buying. Elahere reaching $1 billion a year by 2027 would make ImmunoGen a reasonable purchase; without another success from Cerevel, that deal will remain the $4.5 billion lesson.

Moat trajectory: Holding steady

Elahere growing; Cerevel's lead asset impaired.

The number that tests this moat
Reported
Elahere sales, latest quarter
$211M (Q2 2026); $690M in 2025

The ImmunoGen purchase's return; reaching $1bn a year would justify it.

Source: AbbVie Q2 2026 results release ↗
⚠ Threats to the moat
⚠ THREAT 01
Oncology Is Not Growing
AbbVie's cancer business has not grown in three years, because Imbruvica's decline cancels the new drugs.
References
  1. ReportedIt bought ImmunoGen, maker of the ovarian cancer drug Elahere, in February 2024 for consideration of $9.8 billion, and Cerevel Therapeutics, a neuroscience developer, in August 2024 for $8.7 billion.
    AbbVie Form 10-K for fiscal 2025 - financial statements and notes: earnings, cash flow, balance sheet, acquisitions and contingent consideration. — FY2025 · publ. 20 February 2026 · source ↗
  2. ReportedIt bought ImmunoGen, maker of the ovarian cancer drug Elahere, in February 2024 for consideration of $9.8 billion, and Cerevel Therapeutics, a neuroscience developer, in August 2024 for $8.7 billion.
    AbbVie Form 10-K for fiscal 2025 - financial statements and notes: earnings, cash flow, balance sheet, acquisitions and contingent consideration. — FY2025 · publ. 20 February 2026 · source ↗
  3. ReportedAcquisitions of businesses, net of cash, were $17,493 million in 2024.
    AbbVie Form 10-K for fiscal 2025 - Item 1 business: products, customers, competition and research. — FY2025 · publ. 20 February 2026 · source ↗
  4. ReportedElahere sold $479 million in 2024 and $690 million in 2025, and $211 million in the second quarter of 2026; management assumed $850 million for 2026.
    AbbVie Form 10-K for fiscal 2025 - Item 7 MD&A: net revenues by product and region, and rebates. — FY2025 · publ. 20 February 2026 · source ↗
  5. ReportedElahere sold $479 million in 2024 and $690 million in 2025, and $211 million in the second quarter of 2026; management assumed $850 million for 2026.
    AbbVie second-quarter 2026 results release, Form 8-K exhibit 99.1. — Q2 2026 · publ. 31 July 2026 · source ↗
  6. ReportedElahere sold $479 million in 2024 and $690 million in 2025, and $211 million in the second quarter of 2026; management assumed $850 million for 2026.
    The Motley Fool, AbbVie Q4 2025 earnings call transcript - 2026 revenue assumptions by product and management's comments on share and competitors. — Q4 2025 · publ. 4 February 2026 · source ↗
  7. ReportedCerevel's lead drug, emraclidine, failed in Phase 2 and was impaired by $4.5 billion.
    AbbVie Form 10-K for fiscal 2024 - product revenue for 2022-2024, product concentration, the CEO succession and the emraclidine impairment. — FY2024 · publ. February 2025 · source ↗
  8. ReportedOncology revenue was $6,555 million in 2024 and $6,655 million in 2025, and fell 1.5% in the second quarter of 2026, as Imbruvica declined.
    AbbVie Form 10-K for fiscal 2025 - Item 7 MD&A: net revenues by product and region, and rebates. — FY2025 · publ. 20 February 2026 · source ↗
  9. ReportedOncology revenue was $6,555 million in 2024 and $6,655 million in 2025, and fell 1.5% in the second quarter of 2026, as Imbruvica declined.
    AbbVie second-quarter 2026 results release, Form 8-K exhibit 99.1. — Q2 2026 · publ. 31 July 2026 · source ↗
  10. ReportedAbbVie paid $31.26 a share for ImmunoGen and $45.00 for Cerevel, premiums typical of competitive auctions for late-stage assets.
    AbbVie Form 10-K for fiscal 2025 - financial statements and notes: earnings, cash flow, balance sheet, acquisitions and contingent consideration. — FY2025 · publ. 20 February 2026 · source ↗
  11. ReportedManagement assumed Elahere sales of about $850 million in 2026, so the ImmunoGen purchase will take many years to earn back its price.
    The Motley Fool, AbbVie Q4 2025 earnings call transcript - 2026 revenue assumptions by product and management's comments on share and competitors. — Q4 2025 · publ. 4 February 2026 · source ↗
Sources
Generated September 25, 2026