Catch up on the essentials
- AbbVie issued US$10 billion in bonds during August to fund the cash payment obligations connected to its acquisition of Apogee Therapeutics, a US$10.9 billion all-cash transaction completed earlier this month.
- The smallest tranches, each with a notional value of US$500 million, are due August 2028 with a 4.061% coupon and September 2066 with a 6.1% coupon.
- The acquisition folds Apogee's inflammatory and immunology pipeline, including lead asset zumilokibart for atopic dermatitis, into AbbVie's commercial operation.
Selected from this article · 2026-09-10
Read on for the full pictureAbbVie's nine-tranche bond deal
AbbVie issued US$10 billion in bonds during August to fund the cash payment obligations connected to its acquisition of Apogee Therapeutics, a US$10.9 billion all-cash transaction completed earlier this month. The notes were split across nine tranches, with remaining proceeds earmarked for general corporate purposes, including the option to repay or repurchase outstanding debt. Maturity dates on the offering range from 2028 through 2066.
Tranche structure and pricing
The smallest tranches, each with a notional value of US$500 million, are due August 2028 with a 4.061% coupon and September 2066 with a 6.1% coupon. Four tranches were issued at US$1.5 billion apiece, maturing in September 2031 (4.875%), September 2036 (5.3%), and September 2056 (6%). Two additional segments totaled US$1.25 billion each, due March 2030 with a 4.65% coupon and September 2033 with a 5.05% coupon. S&P Global rated the notes A-, while AbbVie was upgraded to A2 by Moody's at the start of the year.
What the Apogee deal adds
The acquisition folds Apogee's inflammatory and immunology pipeline, including lead asset zumilokibart for atopic dermatitis, into AbbVie's commercial operation. AbbVie completed the buyout on September 3, paying $135.11 per share in cash for the clinical-stage biotech. AbbVie has reiterated full-year 2026 adjusted EPS guidance of $13.87–$14.07, including a $0.14 dilutive impact attributed to the Apogee transaction.
Pairing the deal with an internal pipeline milestone
On the same day AbbVie closed the Apogee acquisition, the company reported positive Phase 3 Cervino trial results for its bispecific T-cell engager, etentamig, in relapsed/refractory multiple myeloma. AbbVie framed the dual catalysts as part of a broader strategy to redeploy cash flow from legacy franchises into next-generation immunology and oncology assets.
AbbVie's underlying revenue base
In Q2 2026, AbbVie posted $16.99 billion in net revenue, up 10.2% year over year, with adjusted diluted EPS of $3.65, a 22.9% increase. Immunology blockbusters Skyrizi and Rinvoq generated $5.505 billion and $2.525 billion in revenue, respectively, growing 24.4% and 24.5%, more than offsetting a 35.9% decline in Humira revenue to $756 million amid biosimilar competition.
AbbVie's outstanding bond profile
As of August 31, AbbVie's notional amount outstanding stood at US$70.90 billion, up from US$59.16 billion a year earlier. The weighted average price was 92.78%, the weighted average yield 5.42%, the weighted average spread 60.7 basis points, the weighted average coupon 4.48%, and the weighted average time to maturity 12.6 years.
Follow-up signals: AbbVie has reiterated its full-year 2026 adjusted EPS guidance of $13.87–$14.07 and disclosed a $0.14 dilutive impact from the Apogee transaction; no additional Apogee-related financing milestones were detailed in the source set.
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