Stat News reported on Wednesday, citing internal emails, that the move comes amid AbbVie’s shift away from small-molecule drugs, including pills.
- AbbVie and Calico first inked their partnership in 2014 with up to $1.5 billion in funding to advance therapies for diseases, including neurodegeneration and cancer.
- The partnership has been extended twice since, including in 2018 and 2021.
- However, in early 2025, Calico announced that a study evaluating the drug Fosigotifator, developed in collaboration with AbbVie, in adults with amyotrophic lateral sclerosis did not meet its primary endpoint.
AbbVie (ABBV) is reportedly ending its partnership with Calico Life Sciences, a company founded by Alphabet. The firm is also laying off chemists working on new drug discovery, according to a report by Stat News.
The report, which cited internal emails, stated that the move comes amid AbbVie’s shift away from small-molecule drugs, including pills, to move further into injectable therapies and genetic medicines.
The Long-Drawn Partnership
Calico is a biotechnology company focused on aging and age-related diseases. It was founded by Alphabet Inc. and former Genentech CEO Arthur D. Levinson and is currently running clinical programs for the treatment of autosomal dominant polycystic kidney disease, vanishing white matter disease, and cancers.
AbbVie and Calico first inked their partnership in 2014 with up to $1.5 billion in funding to advance therapies for diseases including neurodegeneration and cancer. Under the partnership, Calico was responsible for drug discovery and early drug development, while AbbVie will provide support for clinical development and commercial activities. The partnership has been extended twice since, including in 2018 and 2021.
In 2021, AbbVie announced that the collaboration had produced more than 20 early-stage programs addressing disease states across immuno-oncology and neurodegeneration, of which three had advanced into the clinic. The companies then extended the partnership for an additional three years from 2022 to 2025.
However, in early 2025, Calico announced that a study evaluating the drug Fosigotifator, developed in collaboration with AbbVie, in adults with amyotrophic lateral sclerosis did not meet its primary endpoint. ALS is a progressive, fatal neurodegenerative disease that affects nerve cells in the brain and spinal cord, leading to the gradual degeneration of motor neurons and resulting in muscle weakness, loss of mobility, and eventually, impaired respiratory function, often culminating in paralysis.
How Did Stocktwits Users React?
ABBV shares traded 4% higher at the time of writing. On Stocktwits, retail sentiment around ABBV stayed within the ‘bearish’ territory over the past 24 hours, while message volume stayed at ‘normal’ levels.
ABBV stock is up by 31% this year and by 36% over the past 12 months.
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