Key Takeaways
- AbbVie (ABBV) lowered its full-year 2026 adjusted earnings guidance to $13.76–$13.96 per share, falling short of the $14.02 analyst consensus after recording $216 million in R&D-related expenses.
- New York Governor Kathy Hochul declared a State Disaster Emergency effective through Nov. 4, 2026, following a surge in measles cases primarily concentrated in rural areas and neighboring Pennsylvania.
- McKesson (MCK) and private equity firm Clayton Dubilier & Rice (CD&R) are reportedly nearing a deal to acquire Option Care Health (OPCH) for over $5 billion, including debt.
- Yemen's Houthi rebels claimed to have launched three military operations targeting Saudi Arabia, including strikes on oil infrastructure, though Saudi officials have not yet confirmed the incidents.
AbbVie Adjusts Outlook Amid R&D Charges
Biopharmaceutical giant AbbVie (ABBV) updated its financial outlook on Monday, revealing that third-quarter 2026 earnings will be impacted by $216 million in acquired in-process research and development (IPR&D) and milestones expenses. This charge is expected to reduce both GAAP and adjusted diluted earnings per share (EPS) by $0.11 for the quarter.
The company now projects Q3 adjusted diluted EPS between $3.73 and $3.77, notably lower than the $3.84 analyst estimate. The downward revision reflects the ongoing costs of aggressive pipeline expansion and the immediate accounting impact of milestone-based acquisitions.
New York Issues Emergency Order Over Measles Outbreak
Governor Kathy Hochul has declared a State Disaster Emergency in New York, citing 108 confirmed measles cases as of Oct. 3. The outbreak has been particularly severe since mid-July, with 92 cases reported in under-immunized rural communities across 18 counties.
The executive order suspends specific regulations to allow paramedics and EMS providers to administer the MMR vaccine. Furthermore, the order waives individual consent requirements for MMR vaccinations for adults aged 19 and over during the emergency period. Officials noted that neighboring Pennsylvania is facing a "rapidly progressing" outbreak with nearly 1,000 cases, heightening the risk of cross-border transmission.
McKesson and CD&R Target $5B Option Care Buyout
McKesson (MCK) and Clayton Dubilier & Rice are in advanced talks to acquire Option Care Health (OPCH), the largest independent provider of home infusion services in the U.S. The deal is expected to value the company at more than $5 billion including debt.
Under the proposed structure, CD&R would hold a 51% controlling stake, while McKesson would own 49% with an option to purchase the remainder in the future. Option Care Health shares surged 22% in after-hours trading following the report, as investors reacted to the potential premium over its current enterprise value.
Geopolitical Tensions Rise as Houthis Claim Saudi Strikes
Yemen's Houthi rebels announced on Monday that they conducted three military operations within Saudi Arabia. While the group claimed successful strikes against "vital targets," there has been no official confirmation from Riyadh regarding damage or casualties.
The escalation comes as the Saudi-backed Yemeni government launched a major counteroffensive to retake territory held by the rebels. Energy markets remain on edge as Houthis continue to threaten oil infrastructure and maritime shipping routes in the Red Sea and Bab al-Mandab Strait.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.