PETRI DISH PERSPECTIVES: BIOTECH UNLEASHED

Burma | Chicago
Scientist 🥼🧪🔬
Covering companies shaping healthcare 🏥

Stream new episodes, available on all podcast platforms!

PETRI DISH PERSPECTIVES: BIOTECH UNLEASHED

Episode 3: AbbVie

March 26, 2025 • Manead Khin • Season 1 • Episode 3

In this episode of Petri Dish Perspectives: Biotech Unleashed, we explore the rise of AbbVie, a pharmaceutical giant that emerged from Abbott Laboratories in 2013 and quickly became a leader in immunology, oncology, and aesthetics.

From its blockbuster drug Humira to major acquisitions like Pharmacyclics and Allergan, AbbVie has strategically expanded its portfolio and global presence. We’ll break down the company’s history, key milestones, and the vision driving its future—including cutting-edge research in neuroscience and gene therapy.

Join me as we uncover the science, business moves, and leadership decisions that have shaped AbbVie into one of the most influential players in biotech today.

🎧 Grab a coffee and tune in for a fast-paced, insightful breakdown of AbbVie’s journey!

Support the show

Intro

🎙️ [Upbeat, engaging music fades in]
Hello and welcome to Petri Dish Perspectives: Biotech Unleashed, the podcast where science meets innovation. I’m your host, Manead, and I have a PhD background in cancer biology and analytical chemistry. With every episode, my goal is to deliver digestible pieces of information on healthcare companies under 30 mins. Today we’re diving into the story of AbbVie — a company that emerged as a leader in pharmaceuticals and biotechnology. I have been on tours to AbbVie during grad school and want to highlight that AbbVie truly is one of the powerhouses in the midwest.

Quick disclaimer, I give full credit to the original articles cited in the references in the transcript!

Grab a coffee or tea, settle in, and let’s jump in!

[Music fades out]

Segment 1: The Founding Story

AbbVie’s story begins in 2013, but its origins go back much further. Many of you may know that the company was actually spun off from Abbott Laboratories, a healthcare giant founded a century earlier in 1888 by Dr. Wallace C. Abbott, a Chicago-based physician. Abbott Laboratories initially focused on producing “alkaloidal” medicines derived from plants, which were more effective and reliable than many treatments available at the time. This early commitment to innovation and quality set the stage for what would later become AbbVie.

Fast-forward over a century, Abbott Laboratories had grown into a diversified healthcare company with interests in pharmaceuticals, diagnostics, medical devices, and nutrition. However, as its pharmaceutical division grew, the need to create a standalone entity focused exclusively on pharmaceuticals became clear. On October 19, 2011, Abbott announced the plan to separate or so called demerge into two publicly traded companies, spinning off its research-based pharmaceutical manufacturer division. AbbVie was formed on April 10, 2012. Originally an executive vice president at Abbott Laboratories, Richard Gonzalez was asked to lead AbbVie. The separation was fully effective January 1, 2013, and AbbVie was officially listed on the New York Stock Exchange (ABBV) on January 2, 2013. In 2013, AbbVie was officially launched as a separate company, inheriting a robust portfolio of drugs, a strong R&D pipeline, decades of expertise from Abbott along with approximately 21,000 people worldwide. At the time of IPO, AbbVie’s stock was at $34.40 a piece.

Segment 2: Early Growth and Milestones

From the moment AbbVie became independent, the company hit the ground running. Its flagship drug, Humira, quickly established AbbVie as a global leader in immunology. Approved for treating conditions like rheumatoid arthritis, psoriasis, and Crohn’s disease, Humira has consistently been one of the best-selling drugs worldwide, generating over $20 billion in annual revenue at its peak. This early success gave AbbVie the resources to invest heavily in R&D.

AbbVie is also not a shy company when it comes to acquisitions. In 2015, AbbVie strategically expanded its oncology portfolio with the $21 billion acquisition of Pharmacyclics, a move that proved to be a pivotal moment in the company's trajectory. This acquisition granted AbbVie exclusive access to Imbruvica (ibrutinib), a first-in-class Bruton's tyrosine kinase (BTK) inhibitor. Imbruvica had already demonstrated remarkable efficacy in treating cancers such as chronic lymphocytic leukemia (CLL), mantle cell lymphoma (MCL). These are both cancers that target white blood cells which are essential for the immune system. This established Imbruvica as a groundbreaking cancer therapy, particularly in the realm of blood cancers.

This acquisition was more than just a product grab; it represented a calculated effort by AbbVie to diversify its revenue streams and reduce its reliance on Humira, its blockbuster immunology drug. By adding Imbruvica to its pipeline, AbbVie not only gained a significant revenue generator but also positioned itself to become a major player in the rapidly growing oncology market. The move signaled a clear strategic shift, demonstrating AbbVie’s intention to establish itself as a leader in oncology, mirroring its established dominance in immunology.

Segment 3: From Research to Blockbusters

AbbVie’s blockbuster portfolio is a testament to its innovative approach to drug development. Let’s take a closer look at some of its most impactful therapies:

Vraylar: Approved for the treatment of bipolar disorder and schizophrenia, Vraylar has emerged as a significant player in the mental health arena. Its unique mechanism of action, involving partial agonism at dopamine D2 and D3 receptors, has made it a preferred choice for both patients and physicians seeking effective management of these complex conditions. Vraylar's efficacy in addressing both positive and negative symptoms of schizophrenia and its ability to manage bipolar depression has contributed significantly to AbbVie’s growth in the neuroscience sector, highlighting the company's dedication to addressing unmet needs in mental health.
BOTOX: Acquired through AbbVie’s strategic 2020 acquisition of Allergan for $63 billion, BOTOX (botulinum toxin type A) boasts a remarkably versatile range of applications. Initially developed for the treatment of ophthalmological conditions like strabismus (crossed eyes) and blepharospasm (uncontrolled eyelid twitching), BOTOX's therapeutic potential expanded to address a variety of medical conditions, including chronic migraines, muscle spasticity, cervical dystonia, and overactive bladder. But, it was the serendipitous discovery of its cosmetic effects that propelled BOTOX into the realm of popular culture. In the late 1980s, ophthalmologist Dr. Jean Carruthers and her dermatologist husband, Dr. Alastair Carruthers, observed that BOTOX injections not only corrected eye muscle spasms but also reduced wrinkles around the eyes. This accidental finding sparked a revolution in aesthetic medicine, as the ability to temporarily smooth facial lines and wrinkles became highly sought after. By the early 2000s, BOTOX had gained FDA approval for cosmetic use, specifically for the treatment of glabellar lines (frown lines between the eyebrows), marking a pivotal moment in its transition from medical treatment to cosmetic enhancement. Celebrity endorsements, media coverage, and the growing accessibility of cosmetic procedures contributed to its widespread adoption. BOTOX became synonymous with anti-aging, transforming from a clinical treatment into a lifestyle choice. Its presence in popular media, including television shows, movies, and magazines, further solidified its status as a cultural phenomenon. This acquisition not only diversified AbbVie’s portfolio but also opened up new and substantial revenue streams, extending the company’s reach into the burgeoning field of aesthetic medicine and bolstering its presence in neurology.

Segment 4: The Keys to AbbVie’s Success

So, what makes AbbVie stand out in the crowded pharmaceutical landscape? Here are the key factors:

Strategic Acquisitions: From Pharmacyclics to Allergan, AbbVie has made bold moves to diversify its portfolio and expand into new therapeutic areas.
Commitment to R&D: With an annual R&D budget exceeding $5 billion, AbbVie continuously invests in discovering and developing innovative therapies.
Global Reach: Operating in over 175 countries, AbbVie ensures that its life-changing therapies are accessible to patients worldwide.
Focus on Patient Outcomes: AbbVie’s mission is centered on improving the quality of life for patients, whether through groundbreaking medicines or holistic care solutions.

Segment 5: People Who Made Their Mark

AbbVie’s success is driven by the people behind the science. Let’s highlight a few notable names:

Richard Gonzalez: Richard A. Gonzalez, who retired as AbbVie's CEO in July 2024 after leading the company since its 2013 spin-off, now serves as Chairman of the Board of Directors. Despite never finishing college, his career in the pharmaceutical industry began at Abbott Laboratories, where he spent 30 years and held numerous senior leadership roles, including President and Chief Operating Officer. His leadership has been characterized by a proactive and decisive approach, navigating the complexities of the pharmaceutical industry with a focus on innovation and long-term value creation. Gonzalez's tenure has been marked by a series of significant strategic moves, including major acquisitions that have reshaped AbbVie's portfolio and solidified its position as a global biopharmaceutical leader.

Segment 6: What’s Next for AbbVie?

AbbVie’s future looks brighter than ever. The company is investing heavily in next-generation therapies, including gene and cell-based treatments for cancer and rare diseases. It’s also exploring new applications for its existing drugs, ensuring their relevance in an ever-changing healthcare landscape.

In neuroscience, AbbVie is working on promising treatments for Alzheimer’s disease and other neurodegenerative conditions as well as cutting-edge immunotherapies. With a strong foundation, visionary leadership, and a relentless focus on innovation, AbbVie is poised to remain at the forefront of global healthcare. By the time the episode was recorded, AbbVie’s stock is at $201.26 a piece and the company has 50,000 people globally.

Outro

🎙️ [Uplifting music fades in]
Thanks for tuning in to this episode of Petri Dish. I hope you enjoyed exploring the incredible story of AbbVie and its impact on healthcare. Don’t forget to subscribe, leave a review, and share this episode with your network. Have a company or topic you’d like me to cover? Until next time, stay curious and keep exploring the science that’s shaping our future!
[Music crescendos and fades out]

References

People on this episode

Manead Khin

Host