We now expect global sales for Skyrizi to reach more than $10 billion in 2025, an increase of $2.5 billion versus our previous guidance, reflecting higher performance across basically all of the indications. As we can see, sales of Humira are still climbing, with losses in Europe - where revenues fell by 14% to $699m - offset by growth in the US, to $4.7bn, up 10% year-on-year. We have also launched Skyrizi for PSA in rheumatology, where we're seeing strong utilization, which is driving accelerated share growth. This has been in spite of a string of macroeconomic headwinds such as the ongoing Russia-Ukraine war that has contributed to record high inflation in the US and the UK, and the companys psoriatic arthritis drug Adalimumab, known as Humira, facing biosimilar rivals in the US from 2023. The company reported its first revenue for Botox competitor Daxxify. Today, AbbVie operates as a diversified multi-national pharmaceutical company with a patient-centric approach to research. As well as the stock price gains AbbVie has always paid a handsome dividend - which has increased by 270% since the Pharma's inception, currently paying $1.48 per quarter, for a current yield of 4% - the highest in the large Pharmaceutical sector. The S&P 500 (US500) lost 9.1%, the Dow Jones (US30) slid 9.7%, and the Nasdaq Composite fell 23% during the same period. AbbVie projected sales - immunology (my forecasts and assumptions). Having dived into the numbers however and looked ahead to 2030 through the eyes and guidance of management, my conclusion is that investors can probably buy AbbVie stock at current price with reasonably high hopes of making a decent ROI - perhaps 15 - 20% in the next 12 - 18 months, whilst also benefiting from a generous dividend. . AbbVie has said it expects to generate high-single-digit CAGR growth from 2025 to the end of the decade after revenues fall in 2023 due to Humira LOE. We're currently running a sale at my private investing ideas service, Haggerston BioHealth, where members get access to portfolios, market alerts, real-time chat, and more. To summarize, although AbbVie does not have the same clout in oncology as it does in immunology - as evidenced perhaps by the declining sales of Imbruvica - it is clearly an area of focus for management. Disclosure: I/we have a beneficial long position in the shares of BMY, GILD, ABBV either through stock ownership, options, or other derivatives. AbbVie's post-Humira LOE plans are not riskless, and its targets are ambitious, but nevertheless I see no harm in picking up shares in the Pharma at the current price, accepting a generous 4% dividend, and likely benefitting from share repurchases and a steadily growing share price until 2030. It revealed that patients with moderate to severe Crohns disease receiving Abbvies Rinvoq achieved steroid-free clinical remission in significantly higher numbers than patients receiving a placebo. AbbVie CEO Gonzalez told the audience at the JPM Healthcare conference that: We now have a little over 90% access for next year for Humira at parity. Outside of Humira, management does not have to worry about LOEs for any of its other portfolio products before the end of the decade, which is encouraging, however, based on my own projections of how AbbVie will generate its revenues between 2023 and 2030, if management wants to drive a CAGR in the high single digits after 2025, it will need some help from its pipeline - not an area of particular strength for AbbVie. AbbVie Oncology Division Forward Revenue Projections (my table and assumtpions). You should never invest money you cannot afford to lose. After creating the income statement I prepare the discounted cash flow/EBITDA multiple analysis. The lowest target is $136.35 and the highest is $210. In 2022, Humira revenues will likely reach $21bn, which will see the drug overtake cholesterol-lowering Lipitor as the best-selling drug of all-time. The average price target is $163.64 with a high forecast of $190.00 and a low forecast of $133.00. The consensus rating was moderate buy based on 16 analysts ratings, with 10 recommending buy, five hold and sell. It pays a dividend yield of 3.83%, putting its dividend yield in the top 25% of dividend-paying stocks. You should do your own research and never invest money you cannot afford to lose. Psoriatic arthritis is also adding significantly to Skyrizi's momentum, where we are now approved in 54 countries. Venclexta - a "first-in-class BCL-2 inhibitor for multiple hematological malignancies", according to Gonzalez, is forecast for strong growth, whilst Gonzalez has name checked 3 new drugs he expects to be approved by 2026. Neuroscience looks highly promising too, and aesthetics capable of driving some respectable growth driven by old stager Botox. The drug is now approved in severe Rheumatoid Arthritis, active Psoriatic Arthritis, moderate to severe Atopic Dermatitis, Ulcerative Colitis, active Ankylosing Spondylitis, with Crohn's Disease the next approval on the list. Wallet Investor suggested that the price could hit $300.386 in June 2027. call (03) 8658 0539 support.au@capital.com. AbbVie product revenues by quarter and year since FY20. All rights reserved. According to analysts' consensus price target of $161.12, AbbVie has a forecasted upside of 3.2% from its current price of $156.06. Allergan plc was an Ireland-based pharmaceutical company focused on health-oriented aesthetic products and is the owner of Botox. There is an element of risk to that as clinical trial failures are common, even for a giant like AbbVie, and even CEO Gonzalez may be forced to backtrack on some of his blockbuster sales projections. That led to an overall 6% year-on-year gain of 6%, and a 13% sequential gain. I will conclude this analysis by stating that, based on all available information, market headwinds and tailwinds, competitors, and opportunities via its products and pipeline, I still consider AbbVie to be a strong investment opportunity. What other stocks do shareholders of AbbVie own? The dividend payout ratio is 89.56%. Eye Care, Other products Division Projected Revenues to 2030 (my table and assumptions ). The companys original winner, Humira, is still the number one revenue source but the portfolio has been greatly expanded. Kateryna Onyshchuk/iStock via Getty Images. The pharma industry witnessed solid growth amid the pandemic. Sign-up to receive the latest news and ratings for AbbVie and its competitors with MarketBeat's FREE daily newsletter. The consensus among Wall Street research analysts is that investors should "hold" ABBV shares. Your current $100 investment may be up to $188.28 in 2028. This represents a $5.92 dividend on an annualized basis and a dividend yield of 3.79%. This suggests a possible upside of 3.8% from the stock's current price. Abbvies first quarter 2022 financial results for the quarter ended 31 March revealed that diluted earnings per share (EPS) increased to $2.51 on a generally accepted accounting principles (GAAP) basis, up from $1.99 a year earlier. I am modelling for AbbVie to grow revenues at a compound annual growth rate of ~5% between now and 2030 with growth accelerating in the latter half of the decade. Sign in to your free account to enjoy all that MarketBeat has to offer. Shares are consolidating with a buy. MarketRank is calculated as an average of available category scores, with extra weight given to analysis and valuation. ABBV-916 is therefore a real opportunity for AbbVie to develop a more effective and safer drug in the same class and claim a sizeable share of a 6m patient market. Your password must be at least 8 characters long and contain at least 1 number, 1 letter, and 1 special character. The first is Epcoritamab, a CD3xCD20 bispecific for B-cell malignancies, including DLBCL and follicular lymphoma, which AbbVie expects will be approved this year. As of 30 June, analysts price predictions compiled by MarketBeats and long-term forecasts by Wallet Investor projected that the ABBV stock price could rise. AbbVie's free cash flow yield is 10.5% compared to 4.3% for Johnson & Johnson . approvals of Humira, Skyrizi, Rinvoq (AbbVie JPM Healthcare conference presentation). Please disable your ad-blocker and refresh. Among the many avenues of research and innovation are the advancement of precision medicine or pMedicine. AbbVie does not have the funds to pursue any large M&A deals, but it does not need to either, given the strength of its pipeline and products. 326 E 8th St #105, Sioux Falls, SD 57103 With the Hughes Optioneering Strategy, youll soon learn that the safest option for new accounts is options themselves! View the best growth stocks for 2023 here. The company reported $3.60 EPS for the quarter, topping the consensus estimate of $3.54 by $0.06. writing - trading down slightly from its all-time high of >$160 achieved in early December last year. Revance Therapeutics gapped up 54.34% on January 9, and built upon those gains in February. An investment in AbbVie is not without risk, but my contention is that this Pharma is in good hands - CEO Gonzalez has made few mistakes during his near-decade in charge - and will emerge from the Humira LOE a stronger and more diverse company. I'm on twitter @edmundingham. As we can see, AbbVie is likely to generate some impressive cash flow based on its operating margins, which begin at 32%. In the next year, analysts predict that Revenue will reach C$253.83M - an increase of 3.50%. I write about Biotech, Pharma and Healthcare stocks and share investment tips. Although management reminded analysts that "Imbruvica continues to be the total market share leader across all lines of therapy in CLL", the outlook does not look especially promising. Find me at my marketplace channel, Haggerston BioHealth - model portfolio + 4 exclusive stock tips every week. In the next year, analysts expect Free Cash Flow to reach $26.97B - an increase of 58.68%. If you like what you have just read and want to receive at least 4 exclusive stock tips every week focused on Pharma, Biotech and Healthcare, then join me at my marketplace channel, Haggerston BioHealth. How do I arrive at my share price target? American biopharmaceutical company Abbvie (ABBV) has surged nearly 13% year to date (YTD), and 35% year-over-year (YOY), as of 30 June. I'm on twitter @edmundingham. What that means is, essentially it will be on formulary with biosimilars, but there won't be any difference between the biosimilar and Humira from a co-pay standpoint or any kind of a step editing. With a 5-year investment, the revenue is expected to be around +88.28%. 2023 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. That is interesting to me as I think it suggests management will need to commercialize more assets if it wants to hit that target. Is this happening to you frequently? outlook for a company that is still only 10 years old and is about to feel the impact of a loss of patent protection for its mega-blockbuster auto-immune drug Humira, which made $20.7bn of sales for the company in FY21, representing 37% of total revenues generated. 16 Wall Street research analysts have issued "buy," "hold," and "sell" ratings for AbbVie in the last year. The Abbvie stock forecast for 2025 had the price at $259.018. Abbvie has a strong pipeline of projects ahead, and has recently received US FDA approval of its ulcerative colitis drug Rinvoq. About the AbbVie, Inc. stock forecast. Skyrizi and Rinvoq will together achieve a higher peak sales figure than even Humira could manage, even while Humira is still making a substantial top line contribution, still accounting for as much of 7% of AbbVie's total sales in 2030. Should I buy or sell AbbVie stock right now? 16 analysts have issued 12-month price targets for AbbVie's shares. After 2022 Humira's row is shaded yellow to signify patent expiry. In 2022, the company will most likely boast 12 "blockbuster" (>$1bn per annum) selling assets, driving ~$48bn of revenues between them, with Humira being the only drug that faces a near term patent expiry, whilst AbbVie is promising at least 6 or 7 major new product launches by 2026. Not only do these companies pay handsome dividends, they typically grow revenues every year and generate wide profit margins which leads to share price upside. During the same quarter in the prior year, the firm posted $3.31 EPS. (my table and forecasts). Within the oncology division sales of Imbruvica fell 17% year-on-year. Insiders that own company stock include Azita Saleki-Gerhardt, Brian L Durkin, Carlos Alban, Carrie C Strom, Carrie C Strom, Elaine K Sorg, Henry O Gosebruch, Jeffrey Ryan Stewart, Laura J Schumacher, Michael Severino, Perry C Siatis, Richard A Gonzalez, Robert A Michael, Roxanne S Austin, Scott T Reents, Timothy J Richmond and Timothy J Richmond. Having so much debt in a prevailing inflationary environment is also unattractive. (AbbVie data). That was below AbbVie stock analysts' view for $14.16. A AbbVie Inc. (NYSE:ABBV) insider lowered their holding by 87% earlier this year, These 2 Dividend Stocks Could Be a Great Addition to Your Income Portfolio, AbbVie Can Write Diversified Growth Story Without Humira, Rest Of The Business Has Strength, Analyst Says, AbbVie (NYSE:ABBV) Receives New Coverage from Analysts at Guggenheim, AbbVie to Present at the Cowen 43rd Annual Health Care Conference, AbbVie Receives Positive CHMP Opinion for Upadacitinib (RINVOQ) for the Treatment of Adults with Moderate to Severe Crohn's Disease, AbbVie Highlights Robust Gastroenterology Portfolio with New Analyses and Data in Inflammatory Bowel Diseases at the 18th Congress of European Crohn's and Colitis Organisation (ECCO), 3 Stocks to Buy Right Now That Are Cash Cows, The painfully high price of Humira is patently wrong, AbbVie Inc. (NYSE:ABBV) SVP Sells $4,310,832.64 in Stock, StockNews.com Upgrades AbbVie (NYSE:ABBV) to "Strong-Buy", AbbVie Inc. (NYSE:ABBV) Director Sells $1,505,000.00 in Stock, Azita Saleki-Gerhardt Sells 25,000 Shares of AbbVie Inc. (NYSE:ABBV) Stock, AbbVie and Capsida Biotherapeutics Expand Strategic Collaboration to Develop Targeted Genetic Medicines for Eye Diseases with High Unmet Need, view top-rated stocks among Wall Street analysts, 1 NORTH WAUKEGAN ROAD, NORTH CHICAGO IL, 60064. The eye-disease markets are very large - Regeneron's Eylea is a >$7bn per annum selling drug and AMD markets are >$20bn in size. Both of these assets appear to be doing the job they were intended for - protecting AbbVie's dominance in various auto-immune markets - and now represent ~13% of AbbVie's total revenue generation. Compare Top Brokerages Here. The majority of the biosimilar (more sophisticated versions of generic drugs) imitations of Humira that will contest for market share with the original will launch around the middle of 2023, including versions developed by Pfizer (PFE), Boehringer Ingelheim, Organon (OGN), Biocon, Coherus Biosciences (CHRS) and Sandoz, whilst Amgen's (AMGN) Amjevita is permitted to launch in January. I have been maintaining a revenue forecasting table for AbbVie's products which I have amended based on Q2'22 and H1'22 results, and the slightly downgraded guidance issued for 2022 - management now expects adjusted earnings per share ("EPS") of $13.78 - $13.98, representing growth of 17% at the midpoint. AbbVie will have to drop its price point to compete with the generics however, plus there is the 10% of the market it is not covered for, so an overall 20% decline in revenues in 2023 seems accurate. Management are very optimistic on Vraylar, with Gonzalez describing it as "now the only antipsychotic that is a dopamine and serotonin partial agonist approved for the treatment of the most common forms of depression, Bipolar 1 and MDD" and targeting >$5bn peak sales. Stock Price Forecast The 21 analysts offering 12-month price forecasts for Abbvie Inc have a median target of 165.00, with a high estimate of 200.00 and a low estimate of 135.00. Based on aggregate information from My MarketBeat watchlists, some companies that other AbbVie investors own include Intact Financial (IFC), Constellation Software (CSU), AutoCanada (ACQ), Alimentation Couche-Tard (ATD.B), Vermilion Energy (VET), AT&T (T), Bristol-Myers Squibb (BMY), Wheaton Precious Metals (WPM), Rogers Communications (RCI) and Open Text (OTEX). Always do your own research on a stocks price performance and predictions before making an investment. It is a Top 50 Company regarding diversification and a member of the Dow Jones Sustainability World Index and the S&P ESG Index. Investors do not seem to be taking the bait, however, as AbbVie's share price has slipped by >7% across the past month, and >5% across the past 5 days. And it couldnt be more wrong! (6.33% Upside) Based on 15 Wall Street analysts offering 12 month price targets for AbbVie in the last 3 months. Discovery Company. I do much more than just articles at Haggerston BioHealth: Members get access to model portfolios, regular updates, a chat room, and more. Find the latest AbbVie Inc. (ABBV) stock quote, history, news and other vital information to help you with your stock trading and investing. AbbVie has a PEG Ratio of 3.51. Move your mouse over a quarter or year to see how estimates have changed over time. As a result I have dropped Imbruvica revenues to just over $3.5bn in 2022 and modelled for a CAGR growth of just 1.5% between then and 2030. AbbVie's stock was trading at $161.61 on January 1st, 2023. on the strength of its future rather than present portfolio. Join the 500.000+ traders worldwide that chose to trade with Capital.com, Also you can contact us: I had felt this could be an issue for Skyrizi and Rinvoq, given it is rare for a drug to be as dominant as Humira was, but although the level of competition is fierce, both drugs are more than meeting expectations, and with the entire auto-immune market worth as much as $45 - $50bn, it does seem possible that Skyrizi and Rinvoq could one day generate >$20bn revenues between them, as management hopes. Projections are based on making fundamental and technical studies of the ABBV stock price performance. contact@marketbeat.com According to 34 stock analysts, the average 12-month stock price forecast for AbbVie stock is $166.14, which predicts an increase of 7.62%. Over the years, AbbView Inc. has made numerous acquisitions. The current consensus among 24 polled investment analysts is to Buy stock in Abbvie Inc. Moreover, with surging demand, rising investments in research and development, and increasing e-pharmacy channels, the industry is well-positioned for significant growth New research suggests Depakote ingredient could have a new clinical function. This means that . But AbbVie is also keen to explore solid tumors, and I am therefore adding an additional $1.5bn of revenues from that source by 2030. According to CompaniesMarketCap, the biopharmas market capitalisation stood at $272.38bn, making it the worlds 30th most valuable company. Armed with management's detailed guidance and commentary on sales performance of key assets and new product launches, however, I have completed sales projections for AbbVie to 2030, which I will share in this post, highlighting areas of strength and potential weaknesses. AbbVie has received a consensus rating of Hold. ABBV Stock 12 Months Forecast. On the negative side of things, we can see that AbbVie is no longer breaking out sales within its Women's Health division, with revenues lumped into the "all other section, presumably. Snowflake Reports Weak Guidance: Is the Growth Snowflake Melting? 8.05% Over the next nine years, experts believe that GSK's Free Cash Flow will grow at a rate of 1.98%. The AbbVie of today has 5 thriving divisions - Immunology, Oncology, Neuroscience, Aesthetics, and Eye Care - with the latter 3 divisions acquired from Allergan as part of AbbVie's $63bn takeover of that company. AbbVie has been the subject of 9 research reports in the past 90 days, demonstrating strong analyst interest in this stock. The CEO, speaking at a fireside chat during the conference, commented: we remain well-positioned to absorb the impact from the Humira LOE and quickly return to strong growth starting in 2025. I haven't included Epcoritamab sales in my forecasts this time, but I hope to adjust the table before Q3'22 results are announced. The company didn't offer a . In summary, the total revenue increase of just 4% year-on-year in Q2'22 might disappoint a few investors, as might the downgraded guidance, although it is hard to argue that AbbVie is a bad investment when we consider that the Pharma also pays a dividend of $1.41 per quarter, yielding 4% per annum, drove operating earnings of $3.925bn on a GAAP basis, and trades at a >10% discount to my calculated target price. Sales of the drug reached $19.9bn in 2018 and were $19.2bn, $19.8bn and $20.6bn in 2019, 2020, and 2021 respectively. Teliso V is an antibody drug conjugate and a c-Met inhibitor. I wrote this article myself, and it expresses my own opinions. Payout ratios above 75% are not desirable because they may not be sustainable. Rinvoq's progress has been a little more circumspect, but almost as impressive. The shining star in the aesthetics business is Botox, which increased sales by 45% year over year to $477 million in the first quarter of 2021. It is in business to discover, develop, manufacture and market pharmaceuticals globally but in a way that best serves the needs of patients and the global community. Richard A. Gonzalez has an approval rating of 88% among the company's employees. Venclexta continues to pick up momentum with sales up 16% to >$500m in Q2'22, and I forecast the drug to exceed $3.2bn in revenues by the end of the decade. The review period was extended by three months in order for the FDA to review additional data submitted by AbbVie. 164.71 0.00 0.00%. I wrote this article myself, and it expresses my own opinions. AbbVie trades on the New York Stock Exchange (NYSE) under the ticker symbol "ABBV.". Between September 2021 and April 2022, AbbVie stock went on a sensational bull run, gaining 62% and hitting an all-time peak of $174. Whether these factors make ABBV a good investment for you or not will depend on your portfolio composition, investment goals and risk profile, among other factors. Our first quarter results highlight the diversity of our portfolio and include compelling performance from key growth drivers Skyrizi, Rinvoq, Aesthetics and Neuroscience. Earnings for AbbVie are expected to decrease by -0.55% in the coming year, from $11.00 to $10.94 per share. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. AbbVie saw a increase in short interest in February. The 21 analysts offering 1 year price forecasts for ABBV have a max estimate of and a min estimate of . Drug pricing is another issue - there is bipartisan, and international pressure on US Pharmas to reduce drug pricing, particularly outside of the US. AbbVie income statement forecast (My table and assumptions). The company is scheduled to release its next quarterly earnings announcement on Friday, May 5th 2023. In other words, management believes the LOE of Humira - despite it being the world's best-selling drug - will not hinder growth at the company. That is substantially higher than the 12% CAGR achieved between 2018 - 2022, although that period includes the additional revenues from Allergan. AbbVie Stock Forecast 2022 - 2025 - 2030 | StockForecast.com GB The fact that my own forecasts are less ambitious than management's reflects the fact I have not introduced new products into my forecasts, and it will be interesting to see how management performs on that front as AbbVie has not really had to have a string pipeline while Humira has delivered such dominance in the auto-immune markets. Without the additional patents - >130 in total - Humira would have lost its market exclusivity in 2016, but having eventually lost protection in Europe, which has resulted in a sales decline from $6.3bn in 2018, to ~$2.7bn in 2022, Humira will finally face generic competition in the US from the beginning of this year. The acquisition expanded AbbVies neuroscience portfolio, adding first-in-class modulators of the synaptic vesicle protein 2A, including lead molecule SDI-118 currently in Phase 1b studies. In this post I model AbbVie product sales to 2030 - including pipeline assets - and use discounted cash flow analysis to calculate a present day share price target. Although investing in AbbVie isn't riskless, it is advisable based on what we know about the company. Get 30 Days of MarketBeat All Access Free, Sign in to your free account to enjoy these benefits. AbbVie product revenue forecasts to 2030. Their ABBV share price forecasts range from $140.00 to $200.00.