AbbVie Inc. is a US-based biopharma company with global operations. Management believes these 2 drugs could one day generate $15bn in peak sales, going a long way to solving the Humira loss of exclusivity ("LOE") problem. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. 2022 Cable News Network. That led to an overall 6% year-on-year gain of 6%, and a 13% sequential gain. AbbVie has a P/B Ratio of 15.97. Psoriatic arthritis is also adding significantly to Skyrizi's momentum, where we are now approved in 54 countries. AbbVie declared a quarterly dividend on Thursday, February 16th. Different trading strategies will suit different investment goals with short or long-term focus. Top institutional shareholders include Geode Capital Management LLC (1.91%), Morgan Stanley (1.79%), Moneta Group Investment Advisors LLC (1.65%), Price T Rowe Associates Inc. MD (1.15%), Norges Bank (1.06%) and Legal & General Group Plc (0.66%). Over the next nine years, experts believe that GSK's Free Cash Flow will grow at a rate of 1.98%. losed Joint Stock Company FinTech Solutions, Fidelity NASDAQ Composite Index Tracking Stock Fund, Abbvie stock price analysis: Past year performance, Abbvie fundamental analysis: Q1 2022 earnings, Abbvie stock forecast: Company guidance and analysts predictions. In my last note on AbbVie (NYSE:ABBV) for Seeking Alpha - in early July - I reviewed the Big Pharma's Q1'22 earnings and looked ahead to the release of Q2'22 figures. I also considered the long-term 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. Specifically, they have bought $0.00 in company stock and sold $23,102,528.00 in company stock. The eye-disease markets are very large - Regeneron's Eylea is a >$7bn per annum selling drug and AMD markets are >$20bn in size. And it couldnt be more wrong! 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. Popular online brokerages with access to the U.S. stock market include WeBull, Vanguard Brokerage Services, TD Ameritrade, E*TRADE, Robinhood, Fidelity, and Charles Schwab. The P/E ratio of AbbVie is 23.61, which means that it is trading at a less expensive P/E ratio than the Medical sector average P/E ratio of about 100.12. 16 analysts have issued 12-month price targets for AbbVie's shares. Since then, however, the stock price has fallen 18% to. The median. Shares are consolidating with a buy. Trading CFDs is high risk and is not suitable for everyone. Although Wallet Investor did not provide targets for 2030, its longer-term Abbvie stock prediction expected the price to hit $300.386 in June 2027. We continue to anticipate a clearer path to strong sales growth in 2025 with high-single-digit compounded annual growth rate to the end of this decade. Kateryna Onyshchuk/iStock via Getty Images. View AbbVie's Short Interest. This represents a $5.92 dividend on an annualized basis and a dividend yield of 3.79%. AbbVie could be the biggest global Pharma by revenue generation in 2028. For the next eight years, the forecast is for Free Cash Flow to grow by . 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. Out of the most recent ratings, BMO Capital Markets Gary Nachman raised its price target from $161 to $174 with an outperform rating, while Truist Financial analyst Robyn Karnauskas raised the Abbvie stock prediction from $118 to $135 while raising rating to a buy. 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. You should do your own research and never invest money you cannot afford to lose. Eye Care, Other products Division Projected Revenues to 2030 (my table and assumptions ). View analysts price targets for ABBV or view top-rated stocks among Wall Street analysts. Capital Com is an execution-only service provider. The lowest target is $136.35 and the highest is $210. All rights reserved. The median estimate represents a +5.72% increase from the last price of 156.07. As we can see, as per management's guidance revenues fall between 2022 and 2023, before recovering and growing in each year after. The company also successfully completed the acquisition of Syndesi Therapeutics SA in March. If youre new to trading, then youve probably heard the wrong thing about optionsthat theyre risky, unpredictable, or difficult. What guidance has AbbVie issued on next quarter's earnings? As of 2023 February 22, Wednesday current price of ABBV stock is 151.340$ and our data indicates that the asset price has been in an uptrend for the past 1 year (or since its inception).. Abbvie stock price as been showing a rising tendency so we believe that similar market segments were very popular in the given time frame. View our ABBV earnings forecast. In general, it is important to pay attention to trends, both in the overall market and in the specific sector that a company is in. AbbVie has received a consensus rating of Hold. AbbVie is led by CEO and Chairman Rick Gonzalez - likely the only Pharma CEO who lacks a college degree - who has successfully defended Humira from generic drug competition by adopting a controversial strategy of continually applying for new patents related to minor changes in manufacturing methods or administration, often referred to as a "patent thicket". I have speculatively assigned peak sales of $2bn, although it should be noted that success here is far from guaranteed, although if AbbVie did succeed with ABBV916 sales could be 2 or 3x higher than my forecast. Based on an average daily volume of 5,600,000 shares, the days-to-cover ratio is currently 2.1 days. See AbbVie Inc. stock price prediction for 1 year made by analysts and compare it to price changes over time to develop a better trading strategy. According to CEO Gonzalez: Over the long-term, aesthetics continues to be an extremely attractive underpenetrated market with significant growth potential. Refer to our. The pharma industry witnessed solid growth amid the pandemic. Among the more notable are ImmuVen, Pharamcyclics and Allergan plc. It is generally accepted however that 2023 will see the entrants into the US market of several generic versions of Humira - which works by inhibiting Tumor Necrosis Factor ("TNF"), an inflammation causing protein - from the likes of Viatris (VTRS), Organon (OGN), Pfizer (PFE), Amgen (AMGN), and several more companies involved in the development and sale of generic or biosimilar drugs. It is important to do your own research, and remember that your decision to trade depends on your attitude to risk, your expertise in the market, the spread of your investment portfolio and how comfortable you feel about losing money. You should consider whether you understand how CFDs work and can afford the risks. View ABBV analyst ratings or view top-rated stocks. AbbVie Stock: ABBV Overview and Dividend Potential, Wall Street Sees 23% Upside In Revance, Maker Of Botox Competitor (ABBV), Analyst Confidence in Eli Lilly Boosted by Product Pipeline (ABBV), Johnson & Johnson: Taking The Bull By The Horns? That same month, the FDA extended the review period for Skyrizi (risankizumab), a treatment drug for moderate to severe Crohns disease in patients aged 16 and older. As such, I have decreased my own expectations for 2022 based on simply doubling H1'22 revenues to get a FY22 figure, and downgrading growth expectations to 3% per annum until 2026. The review period was extended by three months in order for the FDA to review additional data submitted by AbbVie. Forecast target price for 03-06-2023: $ 152.58. The company's lead asset - all-time best selling immunology drug Humira - finally loses patent protection this year and sales will enter a period of terminal decline. Identify stocks that meet your criteria using seven unique stock screeners. AbbVie (NYSE:ABBV) pays an annual dividend of $5.92 per share and currently has a dividend yield of 3.83%. 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. I am not receiving compensation for it (other than from Seeking Alpha). (my tables). AbbVie probably does not want to be recognized as simply an immunology giant however, it wants to be substantially more diversified and like all major Pharma's it has a strong long-term focus on oncology. AbbVie Oncology Division Forward Revenue Projections (my table and assumtpions). Drug development has not traditionally been one of AbbVie's strengths - it has not had to be - but we ought to see the positive results of heavy investment into the oncology pipeline over the next 5-7 years, and by 2030, I believe this division could account for >17% of AbbVie's total revenues. There has been a raft of price-moving news for Abbvie, which may positively affect the stock price. Price target. The companys original winner, Humira, is still the number one revenue source but the portfolio has been greatly expanded. Move your mouse over a quarter or year to see how estimates have changed over time. That is interesting to me as I think it suggests management will need to commercialize more assets if it wants to hit that target. The company didn't offer a . Botox accounts for the bulk of the companys Aesthetics portfolio revenue and about 4% of the net as of 2022. View institutional ownership trends. This could present more profit potential for drugmakers as well as investors. AbbVie Stock Forecast 2023 $165.00 In the last five quarters, AbbVie's Price Target has risen from $122.84 to $162.12 - a 31.98% increase. In the past I have written about the high level of competition between major Pharma in the auto-immune space - for example, for Psoriatic Arthritis the list of approved drugs includes Humira, UCB Pharma's Cimzia, Amgen's Enbrel, Johnson & Johnson's (JNJ) Stelara, Eli Lilly's (LLY) Talzt, Novartis' (NVS) Cosentyx and Bristol-Myers Squibb's (BMY) Orencia. In terms of market cap, it ranks third behind Pfizer ( PFE) and Novo Nordisk ( NVO ). Past performance is no guarantee of future results. That is substantially higher than the 12% CAGR achieved between 2018 - 2022, although that period includes the additional revenues from Allergan. Only you can design whether Abbvie stock is the right investment for you. AbbVie made the bold decision to take on a heavy debt load and bid for Allergan, with the deal being completed in 2020. The Immunology division looks strong, even factoring in the patent cliff faced by $20 billion-selling Humira. AbbVie stock forecast 2022 - 2025 - 2030 with analysis AbbVie stock stood at $162.110000610352 on 2022-03-31. forecast for 2023 is $159.42, forecast for 2024 is $156.65, forecast for 2025 is $139.68, forecast for 2026 is $124.48, Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. About the AbbVie, Inc. stock forecast. Perhaps this is an example of how ruthless management can be when encountering falling sales, and a warning that not all company divisions are guaranteed to thrive. The company may not generate as much excitement as some of the other members of the "Big 8" - most notably Eli Lilly and its weight loss franchise, but the path to revenue growth, expanding margins and a growing share price is clear. All rights reserved. The average analyst rating for AbbVie stock from 34 stock analysts is "Buy". As we look beyond 2025, we expect combined sales for Skyrizi and Rinvoq to exceed the peak revenues achieved by Humira, which was more than $21 billion. AbbVie projected sales - immunology (my forecasts and assumptions). The companys full-year adjusted diluted EPS guidance excluded any impact from acquired IPR&D and milestones that may be incurred beyond the first quarter of the year, as both cannot be reliably forecasted. The other major plus is probably the performance of the neuroscience divisions, where as we can see, Botox (indicated for migraine treatment), atypical antipsychotic Vraylar, migraine therapy Ubrelvy and newly launched Qulipta, an oral CGRP inhibitor indicated for chronic migraine all delivered good sales growth. Finally I can present a target price for AbbVie stock in 2023 using DCF / EBITDA analysis. 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. 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. These are mostly related to the US Food and Drug Administrations (FDA) approval of Abbvies drug Rinvoq for ulcerative colitis and positive top-line results from the Phase 3 induction study U-EXCEL. The consensus rating was moderate buy based on 16 analysts ratings, with 10 recommending buy, five hold and sell. Duodopa is approved for Parkinson's Disease but Gonzalez believes that the subcutaneous non-surgical delivery system of candidate ABBV951 can "significantly expand the patient population currently addressed by Duopa", and sees the drug as yet another future blockbuster. The company employs 50,000 workers across the globe. Should I buy or sell AbbVie stock right now? View the latest news, buy/sell ratings, SEC filings and insider transactions for your stocks. In-depth profiles and analysis for 20,000 public companies. I wrote this article myself, and it expresses my own opinions. The 21 analysts offering 1 year price forecasts for ABBV have a max estimate of and a min estimate of . Investors needn't panic however - Humira's replacements are expected by AbbVie's CEO to generate even higher revenues per annum. It is a Top 50 Company regarding diversification and a member of the Dow Jones Sustainability World Index and the S&P ESG Index. All generate blockbuster <$1bn per annum sales - in Stelara's case >$9bn per annum, and in Enbrel's case, >$4.5bn. (my tables and forecasting). AbbVie updated its FY 2024 earnings guidance on Friday, February, 10th. A major reason behind Abbvies stellar performance amid the ongoing economic crises is the resolution of the companys Humira (adalimumab) litigation with Alvotech in March 2022. Other products such as Mavyret and Creon appear to have many more years of blockbuster sales ahead of them, although it is interesting to note that AbbVie no longer reports revenues from its Women's Health division, and scarcely mentions it. The above table shows quarterly and annual product revenues going back to FY20, whilst the last 4 columns show revenue growth percentage between FY20 and FY21, then revenue growth between Q2'21 and Q2'22, the sequential (quarter on quarter) growth, followed by product sales as a percentage of revenues. The consensus among Wall Street research analysts is that investors should "hold" ABBV shares. CFDs are complex leveraged instruments and come with a high risk of losing money. Their combined revenues are expected to reach $7.5bn in 2022, and Gonzalez told the audience at JPM that: Skyrizi and Rinvoq are now on pace to deliver more than $17.5 billion in combined sales, risk adjusted sales in 2025, well above our previous expectations. AbbVie's Q2'22 earnings threw up some positives and negatives for investors to contemplate. Read the conference call transcript. In the next year, analysts expect Free Cash Flow to reach $26.97B - an increase of 58.68%. Any company is likely to struggle if sales of its best-selling asset begin to decline by ~20% per annum, which is traditionally the rate at which patent expired drugs' sales slip, but when the drug in question accounts for >35% of a company's sales, as Humira does, the situation becomes even more serious. The company is focused on research and has a number of collaborations and partnerships to that end. The company is a member of the Fortune 100 and one of the Fortune 100s Best Companies To Work For. (NYSE: ABBV) Abbvie's current Earnings Per Share (EPS) is $6.65. AbbVie Stock Forecast 2022 - 2025 - 2030 | StockForecast.com GB My EPS figure increases slightly between 2022 and 2023, whilst AbbVie has suggested it will be down slightly before beginning to accelerate towards the end of the decade, as revenues correspondingly begin to climb sharply once the worst of the Humira LOE is over. Factset: FactSet Research Systems Inc.2019. 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. According to the Abbvie stock technical analysis, as of 30 June, the Relative Strength Index (RSI) was pointing to neutral at 62.18. Fortunately for AbbVie shareholders Gonzalez and his management team have had many more years than expected to prepare for Humira's Loss of Exclusivity ("LOE"), and it has never been the Pharma's ambition to build its business around a single, all-conquering but time-limited drug. Get short term trading ideas from the MarketBeat Idea Engine. I write about Biotech, Pharma and Healthcare stocks and share investment tips. Although the company has admitted that 2023 earnings will likely be down in 2022 - guidance for last year is for earnings per share ("EPS') of $13.84 - $13.88 on an adjusted diluted basis, versus $12.7 in 2021 - Gonzalez and his team were making some bold promises to investors at this year's JP Morgan Healthcare conference. Having so much debt in a prevailing inflationary environment is also unattractive. All rights reserved. The company has a robust pipeline of new products that are in some stage of clinical trials. AbbVie product revenue forecasts to 2030. I am not receiving compensation for it (other than from Seeking Alpha). I am not receiving compensation for it (other than from Seeking Alpha). 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. To date, the company had invested more than $50 billion into research through more than 250 partnerships. Below, I will outline how I see AbbVie putting the Humira LOE firmly behind it, and driving the high single digit percentage annual growth management has promised.
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