Shares of AbbVie $ABBV ( ▼ 3.98% ) and Revolution Medicines $RVMD ( ▲ 4.56% ) slid in early trading after AbbVie said it is not in discussions to acquire the oncology biotech, pushing back on a Wall Street Journal report that had suggested a deal was close.
On Wednesday, the Journal reported that AbbVie was in advanced talks to buy Revolution, which was valued at roughly $16 billion before the report. AbbVie later told multiple outlets that it is not in talks with the company, casting doubt on the story and cooling investor enthusiasm.
WSJ stands by report, hints at rival bidder
Despite AbbVie’s denial, the Journal doubled down, reporting that discussions could still be ongoing if they do not hit last-minute snags. It also noted that a deal has not been finalized and that another suitor could ultimately win out.
Revolution shares had surged around 30 percent on Wednesday following the initial report but gave back some of those gains Thursday morning, falling roughly 7 percent.
Why the deal matters for biotech M&A
If completed, the transaction would have marked the first multibillion-dollar biotech acquisition of the year. The sector is seeing renewed takeover interest as large drugmakers brace for upcoming patent expirations and look to replenish their pipelines.
Oncology remains one of the most attractive areas for dealmaking, alongside weight-loss drugs, as big pharmaceutical companies search for growth drivers to offset looming revenue cliffs.