AbbVie to Acquire Arizona Manufacturing Facility, Further Strengthening Manufacturing Capabilities in the United States

Rhea-AI Summary

AbbVie (NYSE:ABBV) agreed to acquire a device manufacturing facility and associated intellectual property from West Pharmaceutical Services (NYSE:WST) in Tempe, Arizona, expanding its drug delivery device manufacturing capacity.

AbbVie plans to hire approximately 200 employees at the site and to invest more than $175 million to acquire, modernize, and integrate the facility into its global network. The deal transfers multiple production lines and 3.5 mL on-body injector technology to support current and next-generation immunology and neuroscience medicines. The transaction is anticipated to close in mid-2026, subject to closing conditions, and is part of AbbVie's broader plan to invest >$10 billion in U.S. capital over the next decade.

Positive

• Planned investment of more than $175 million to acquire and modernize the facility
• Plan to hire approximately 200 employees at the Tempe site
• Adds 3.5 mL on-body injector technology and multiple production lines
• Supports AbbVie’s >$10 billion U.S. capital investment commitment over the next decade

Negative

• Transaction is subject to closing conditions and not finalized
• Closing is only anticipated in mid-2026, creating timing uncertainty

News Market Reaction

-0.95%

1 alert

-0.95% News Effect

On the day this news was published, WST declined 0.95%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

US capital commitment: more than $10 billion Tempe facility investment: more than $175 million New hires at site: approximately 200 employees +5 more

8 metrics

US capital commitment more than $10 billion Planned AbbVie capital investment in the U.S. over the next decade

Tempe facility investment more than $175 million To acquire, modernize and integrate the Arizona manufacturing facility

New hires at site approximately 200 employees Planned AbbVie hiring at the Tempe, Arizona facility

On-body injector size 3.5 mL On-body injector technology included in the transaction

US employment approximately 29,000 people AbbVie employees in the U.S. across all 50 states and Puerto Rico

US manufacturing employees more than 6,000 AbbVie employees at 11 U.S. manufacturing sites

US manufacturing sites 11 sites Number of AbbVie manufacturing sites in the United States

Closing timing mid-2026 Anticipated closing date of the Tempe facility transaction

Market Reality Check

Price: $247.78 Vol: Volume 487,024 is below t...

normal vol

$247.78 Last Close

Volume Volume 487,024 is below the 20-day average of 688,873, suggesting no outsized pre-news positioning. normal

Technical Share price 275.52 is trading above the 200-day MA at 244.39, indicating a pre-existing uptrend.

Peers on Argus

Peers in Medical Instruments & Supplies showed small mixed moves, mostly under 1...

Peers in Medical Instruments & Supplies showed small mixed moves, mostly under 1%, while WST was up 0.11%. No peers appeared in the momentum scanner and no same-day peer news was reported, indicating this headline is likely company-specific rather than a sector-wide move.

Historical Context

5 past events · Latest: Dec 12 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 12	Investor conference	Neutral	-1.8%	Announcement of J.P. Morgan Healthcare Conference presentation and webcast access.
Dec 10	Dividend declaration	Positive	+0.3%	Board declared a regular quarterly dividend of $0.22 per share.
Oct 27	Product launch	Positive	-3.5%	Launch of West Synchrony™ Prefillable Syringe System with Jan 2026 availability.
Oct 24	Investor conferences	Neutral	-3.2%	Schedule of four investor conference appearances with webcast replays.
Oct 23	Earnings results	Positive	+10.9%	Q3 2025 beat with higher net sales, EPS, and raised full-year guidance.

Pattern Detected

Recent history shows strong positive alignment on earnings beats, but several strategic or conference-related announcements saw negative price reactions, suggesting occasional sell-the-news behavior outside of earnings.

Recent Company History

Over the last few months, West Pharmaceutical Services has highlighted investor engagement, capital return, product innovation, and solid financial performance. A Q3 2025 earnings beat with raised guidance drove a 10.92% gain. Product launch news for the West Synchrony™ Prefillable Syringe System and multiple conference announcements in Oct–Dec 2025 coincided with declines of 3–4%. A regular dividend declaration in Dec 2025 saw a modestly positive reaction, underscoring that earnings remain the clearest upside catalyst in recent trading.

Market Pulse Summary

This announcement describes AbbVie’s agreement to acquire a Tempe, Arizona device manufacturing faci...

Analysis

This announcement describes AbbVie’s agreement to acquire a Tempe, Arizona device manufacturing facility and related intellectual property from West, as part of a broader plan to invest more than $10 billion in U.S. manufacturing over the next decade. For West, it represents a change in its manufacturing asset base. Against a backdrop of recent earnings strength and product launches, investors may watch for disclosed transaction terms and any updates on how this affects future revenue mix and capital deployment.

Key Terms

intellectual property, drug delivery device, on-body injector

3 terms

intellectual property regulatory

"acquire a device manufacturing facility in Tempe, Arizona and associated intellectual property"

Intellectual property are legal rights that protect creations of the mind—such as inventions, brand names, designs, software, or secret formulas—giving the owner control over who can use, copy or sell them. For investors, IP is like owning a blueprint or recipe: it can generate steady income through exclusive sales or licensing, boost a company’s competitive edge and valuation, and also create costs or risks if rights must be defended or challenged in court.

drug delivery device technical

"expand AbbVie's drug delivery device manufacturing capabilities and capacity"

A drug delivery device is a tool or gadget that puts a medicine into a patient’s body in a controlled way—examples include syringes, inhalers, patches, pumps and auto-injectors. Think of it like the packaging and dispenser for a drug that ensures the right dose, timing and location, which can make a treatment safer, more convenient or more effective. Investors watch these devices because they affect how widely a drug can be used, the costs of treatment, regulatory approval pathways, and potential for recurring sales or proprietary advantages.

on-body injector technical

"including multiple production lines, and 3.5 mL on-body injector technology"

An on-body injector is a small, wearable device that sticks to the skin and automatically delivers a medication under the skin either as a single large dose or over a set period, like a miniature, timed syringe you wear. Investors care because it can make medicines easier to use outside hospitals, improving patient adherence and creating new product value, recurring revenue, manufacturing complexity and regulatory oversight that affect commercial prospects.

AI-generated analysis. Not financial advice.

• Milestone marks progress against AbbVie's previously announced commitment to invest more than $10 billion of capital in the U.S. over the next decade to broadly support innovation and expand critical manufacturing capabilities and capacity
• Supports production of AbbVie's current and next-generation immunology and neuroscience medicines
• Transaction anticipated to close in mid-2026

NORTH CHICAGO, Ill., Jan. 12, 2025 /PRNewswire/ -- AbbVie (NYSE: ABBV) and West Pharmaceutical Services (NYSE: WST) announced today a definitive agreement for AbbVie to acquire a device manufacturing facility in Tempe, Arizona and associated intellectual property from West. The acquisition of the manufacturing site will significantly expand AbbVie's drug delivery device manufacturing capabilities and capacity.

AbbVie plans to hire approximately 200 employees at the site and invest more than $175 million to acquire, as well as modernize and fully integrate it into its global manufacturing network. The combination of this acquisition and associated planned investments are part of AbbVie's commitment to expanding its pharmaceutical manufacturing in the United States (U.S.), supporting innovation and improving patient access and outcomes.

"Over the next decade, AbbVie is investing more than $10 billion in capital to broadly support innovation and expand our manufacturing capabilities and capacity in the U.S.," said Robert A. Michael, chairman and chief executive officer, AbbVie. "With this investment, AbbVie is strengthening our manufacturing capabilities, ensuring we are well-positioned to develop and deliver next-generation medicines that make a remarkable impact on patients' lives."

The transaction includes the transfer of manufacturing facilities, including multiple production lines, and 3.5 mL on-body injector technology to support production of current and next-generation AbbVie immunology and neuroscience medicines.

With a presence in all 50 states and Puerto Rico, AbbVie employs approximately 29,000 people in the U.S., including more than 6,000 at its 11 U.S. manufacturing sites. When completed, this acquisition will significantly expand AbbVie's presence and economic impact in Arizona.

The transaction is anticipated to close in mid-2026, subject to closing conditions.

About AbbVie 

AbbVie's mission is to discover and deliver innovative medicines and solutions that solve serious health issues today and address the medical challenges of tomorrow. We strive to have a remarkable impact on people's lives across several key therapeutic areas including immunology, oncology, neuroscience and eye care – and products and services in our Allergan Aesthetics portfolio. For more information about AbbVie, please visit us at www.abbvie.com. Follow @abbvie on LinkedIn, Facebook, Instagram, X (formerly Twitter) and YouTube. 

Forward-Looking Statements  

Some statements in this news release are, or may be considered, forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995. The words "believe," "expect," "anticipate," "project" and similar expressions and uses of future or conditional verbs, generally identify forward-looking statements. AbbVie cautions that these forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those expressed or implied in the forward-looking statements. Such risks and uncertainties include, but are not limited to, challenges to intellectual property, competition from other products, difficulties inherent in the research and development process, adverse litigation or government action, changes to laws and regulations applicable to our industry, the impact of global macroeconomic factors, such as economic downturns or uncertainty, international conflict, trade disputes and tariffs, and other uncertainties and risks associated with global business operations. Additional information about the economic, competitive, governmental, technological and other factors that may affect AbbVie's operations is set forth in Item 1A, "Risk Factors," of AbbVie's 2024 Annual Report on Form 10-K, which has been filed with the Securities and Exchange Commission, as updated by its Quarterly Reports on Form 10-Q and in other documents that AbbVie subsequently files with the Securities and Exchange Commission that update, supplement or supersede such information. AbbVie undertakes no obligation, and specifically declines, to release publicly any revisions to forward-looking statements as a result of subsequent events or developments, except as required by law. 

Media: Gabby Tarbert    (224) 244-0111 Gabrielle.tarbert@abbvie.com

Investors: Liz Shea (847) 935-2211 liz.shea@abbvie.com

 

View original content:https://www.prnewswire.com/news-releases/abbvie-to-acquire-arizona-manufacturing-facility-further-strengthening-manufacturing-capabilities-in-the-united-states-302658118.html

SOURCE AbbVie

FAQ

What is AbbVie buying from West Pharmaceutical Services (WST) in Arizona?

AbbVie is acquiring a device manufacturing facility in Tempe, Arizona and associated intellectual property, including multiple production lines and 3.5 mL on-body injector technology.

How much will AbbVie invest to acquire and upgrade the Tempe facility (NYSE:ABBV)?

AbbVie plans to invest more than $175 million to acquire, modernize, and fully integrate the facility into its global manufacturing network.

Will the Tempe acquisition create jobs in Arizona for WST shareholders to note (WST)?

AbbVie plans to hire approximately 200 employees at the Tempe site, increasing its U.S. manufacturing presence and local economic impact.

When is the AbbVie acquisition of the WST Tempe facility expected to close?

The transaction is anticipated to close in mid-2026, subject to customary closing conditions.

How does the Tempe facility acquisition fit into AbbVie’s U.S. investment plans (NYSE:ABBV)?

The acquisition and planned investments are part of AbbVie’s commitment to invest more than $10 billion in U.S. capital over the next decade to expand manufacturing capabilities.