By Fineline Cube 
AbbVie Inc. (NYSE: ABBV) announced today that it will terminate its long‑standing collaboration agreement with Calico Labs, the life‑science subsidiary of Alphabet Inc. The partnership, launched in 2014, focused on age‑related diseases and neurodegeneration and will wind down in accordance with the parties’ termination provisions.
Deal History & Financial Commitment
| Year | Event | Total Investment Announced |
|---|---|---|
| 2014 | Original 11‑year R&D collaboration signed | USD 1.5 bn (up‑front) |
| 2018 | First renewal | USD 0.5 bn (AbbVie) + USD 0.5 bn (Calico) |
| 2021 | Second renewal | USD 0.5 bn (AbbVie) + USD 0.5 bn (Calico) |
| 2025 | Termination notice filed | No further cash commitments |
The alliance was structured as a joint research programme with shared milestones, co‑funded laboratories, and joint intellectual‑property (IP) ownership.
Strategic Rationale for Termination
- Portfolio realignment: AbbVie is refocusing capital toward its immunology, oncology, and virology pipelines, where near‑term revenue upside is clearer.
- Milestone achievement: The collaboration has delivered pre‑clinical insights but has not yet produced a clinical candidate that meets AbbVie’s go‑to‑market criteria.
- Resource optimisation: Ending the partnership frees ≈ USD 200 m of annual R&D spend, allowing AbbVie to accelerate internal projects and external acquisitions.
About Calico Labs
- Founders: Alphabet (Google’s parent) and Arthur Levinson, Ph.D., former Genentech CEO and current Apple Chairman.
- Mission: Translate fundamental research on aging and age‑related diseases into therapeutic pipelines.
- Current focus: Early‑stage biology of neurodegeneration, metabolic decline, and cellular senescence.
Market Impact
- AbbVie stock: Shares opened +1.3 % on the news, reflecting investor confidence in the company’s strategic pivot.
- Alphabet stock: Minimal reaction; the termination is viewed as a non‑core biotech divestment for the tech conglomerate.
- Sector outlook: The move underscores a broader industry trend of pharma firms trimming long‑duration, high‑risk aging programmes in favour of nearer‑term product launches.
Forward‑Looking Statements
This brief contains forward‑looking statements regarding the termination, future R&D allocation, and market expectations. Actual results may differ due to regulatory outcomes, scientific progress, and macro‑economic conditions.-Fineline Info & Tech