AbbVie says it’s not in talks to buy Revolution Medicines; WSJ reports another suitor may prevail
AbbVie says it “is not in discussions” to acquire oncology biotech Revolution Medicines, bucking previous reporting by The Wall Street Journal and sending both stocks slipping in early trading.
The Journal reported Wednesday that the drugmaker was in advanced talks to acquire Revolution, a company worth about $16 billion before the story published. In a statement to several outlets, AbbVie said it is not in talks to acquire the biotech.
After Abbvie’s statement, the Journal stuck with a lead that the companies were near a deal, “granted the talks don’t hit any last-minute snags.” It also reported that “a deal hasn’t been finalized and another suitor may prevail.”
Revolution soared around 30% on Wednesday. It fell back about 7% Thursday morning.
The acquisition would’ve been the first multibillion-dollar biotech deal of the year, as M&A activity in the sector is heating up. Big Pharma faces a patent cliff in the next few years and is looking for new products to bolster its pipelines, with weight-loss medications and oncology being among the most lucrative.
