What other stocks do shareholders of AbbVie own? Eye Care, Other products Division Projected Revenues to 2030 (my table and assumptions ). Allergan plc was an Ireland-based pharmaceutical company focused on health-oriented aesthetic products and is the owner of Botox. 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 am using a weighted average cost of capital of ~10%, which is broadly consistent with the figure I use when modelling for the other 7 members of what I term the "Big 8" US Pharmas - Johnson & Johnson, Eli Lilly, Pfizer, Merck & Co (MRK), Bristol Myers Squibb, Amgen, and Gilead Sciences (GILD) - which helps prove the accuracy of the calculation. AbbVie (NYSE:ABBV) has a market capitalization of $276.13 billion and generates $58.05 billion in revenue each year. AbbVie Stock Crumbles On Mixed Earnings, Slashes 2022 Earnings Outlook 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. Although investing in AbbVie isn't riskless, it is advisable based on what we know about the company. 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. In the next year, analysts predict that Revenue will reach C$253.83M - an increase of 3.50%. Other approved ADC's targeting the c-Met protein, a validated target in NSCLC, include Novartis Tabrecta, which has been pegged for peak sales of ~$1.5bn, which seems a realistic target for Teliso given how large the lung cancer market is - the largest of all oncology markets. What is a Good Dividend Yield? Within the oncology division sales of Imbruvica fell 17% year-on-year. I/we have a beneficial long position in the shares of ABBV, BMY either through stock ownership, options, or other derivatives. Our momentum combined with ramping contributions from new products and new indications will drive accelerating revenue and EPS growth through the rest of the year., ABBV has done very well to add to its impressive gains from the past couple of years. Projections are based on making fundamental and technical studies of the ABBV stock price performance. According to AbbVie CEO Rick Gonzalez, speaking on the Q2'22 earnings call, "Skyrizi's total prescription share of the U.S. biological market (in psoriasis) has increased to approximately 26%", and". AbbVie has fought off patent challenges against Humira for years longer than expected, and despite losing exclusivity in Europe in 2020, a series of price hikes and market dominance in the US in indications such as Rheumatoid Arthritis ("RA"), Psoriatic Arthritis ("PsA"), Crohn's Disease ("CD"), and Ulcerative Colitis ("UC") - have enabled the drug's sales revenues to keep growing. Management has previously stated that it expects total revenues to decline in 2023 following the Humira LOE, followed by a return to growth in 2024, and a "high single digit CAGR" maintained through the remainder of the decade. Analysts have tipped the drug to achieve peak sales of $2.75bn, and although the emergence of CAR-T therapies and some concerns around safety - notably cases of cytokine release syndrome ("CRS') - persist, this revenue figure is achievable in my view. This would represent an increase of 1.78%. Refer to our. (ABBV) AbbVie Stock Predictions from the Leading Provider of Short and Long Term Stock Price Forecasts. 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. Find me at my marketplace channel, Haggerston BioHealth - model portfolio + 4 exclusive stock tips every week. First of all, as shown in the table above I forecast product sales out to 2030. 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. To be sure, AbbVie is modeling for a tough year in 2023 for the aesthetics market. In this article we take a closer look at the Abbvie stock forecast, after analysing the firms latest earnings, price moving news and analyst comments. These are Immunology, Oncology, Neurology, Virology and Eye Care. As I have mentioned in previous notes, however, the gains owe more to price hikes than sales volumes, and come 2023 and the LOE, even AbbVie admits the blow to revenues will be substantial. And never invest or trade money you cannot afford to lose. 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. Management initially blamed slow take-up post pandemic for the drug's declining sales, but Gonzalez also told JPM Conference attendees that "new competitive entrants has significantly lowered our sales expectations for Imbruvica". Since then, ABBV stock has decreased by 3.4% and is now trading at $156.06. 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. Abbvies haematologic oncology portfolio, neuroscience portfolio and aesthetics portfolio reported net revenues of $1.65bn, $1.49bn and $1.37bn, respectively. Psoriatic arthritis is also adding significantly to Skyrizi's momentum, where we are now approved in 54 countries. Johnson & Johnson Free Cash Flow Forecast for 2023 - 2025 - 2030. The lowest target is $136.35 and the highest is $210. 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. 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 Inc. (ABBV) Stock Forecast & Price Targets - Stock Analysis The material provided on this website is for information purposes only and should not be understood as an investment advice. The P/E ratio of AbbVie is 23.61, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 126.03. Since its 2013 separation from Abbott Laboratories (ABT 1.78%), AbbVie's stock has grown more than 160%. 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. Slide from JPM Conference 2022 presentation. Is this happening to you frequently? 67.71% of the stock of AbbVie is held by institutions. In my modeling table above, I estimate Humira sales will decline by 25% between 2022 and 2023, to ~$16bn, although some of that lost revenue will be gobbled up by Skyrizi/Rinvoq. 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. In the last two years, Aurora Cannabis's Revenue has fallen from C$245.54M to C$245.25M - a 0.12% decrease. Abbvie Inc Stock Forecast, Predictions & Price Target - WallStreetZen Capital Com is an execution-only service provider. ABBV : ABBVIE INC stock forecast 2022 - 2025 - 2030 - AI Pickup 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. You should do your own research and never invest money you cannot afford to lose. That is substantially higher than the 12% CAGR achieved between 2018 - 2022, although that period includes the additional revenues from Allergan. Under the terms of the resolution, AbbVie will grant Alvotech a non-exclusive licence to its Humira-related patents in the US, which will begin on 1 July 2023. The consensus rating was moderate buy based on 16 analysts ratings, with 10 recommending buy, five hold and sell. 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. The company provided earnings per share (EPS) guidance of $10.70- for the period. Since then, however, the stock price has fallen 18% to its current price of $142.6. Research Reports & Trade Ideas - Yahoo Finance The company issued revenue guidance of -. 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. 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. Trading CFDs is high risk and is not suitable for everyone. Specifically, they have bought $0.00 in company stock and sold $23,102,528.00 in company stock. In terms of market cap, it ranks third behind Pfizer ( PFE) and Novo Nordisk ( NVO ). 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. AbbVie Stock Forecast 03-06-2023. ABBV has several positive factors pushing its price performance. The Abbvie stock forecast for 2025 had the price at $259.018. The company has a robust pipeline of new products that are in some stage of clinical trials. 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. 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. 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. As we can see, as per management's guidance revenues fall between 2022 and 2023, before recovering and growing in each year after. Finally, AbbVie was able to raise its financial . Finally I can present a target price for AbbVie stock in 2023 using DCF / EBITDA analysis. on the strength of its future rather than present portfolio. At their peak, according to a slide from AbbVie's presentation at the JPMorgan (JPM), these 2 drugs are expected to generate more revenues than Humira at its peak. While some of the gains are due to investor perception that it is a strong company, some view ABBV as a defensive stock, with most of the other stocks in the sector also doing well. What is Richard A. Gonzalez's approval rating as AbbVie's CEO? 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. Please log in to your account or sign up in order to add this asset to your watchlist. Naturally, if there is a more effective and safe drug than Humira available for the same indication, then physicians are likely to prescribe it over Humira, or a Humira biosimilar. Gonzalez has vigorously defended AbbVie against accusations of price manipulation, but the company is renowned for pushing drug prices up annually and should its powerful lobbies become less powerful in the face of external pressure, once again, the sector will start to look unattractive for investors. Abbvie stock price has put up an impressive performance in 2022. 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. The weighted average cost of capital I estimate to be 9.6% - I tend to use a WACC of 10% for most Big Pharma analysis. American biopharmaceutical company Abbvie (ABBV) has surged nearly 13% year to date (YTD), and 35% year-over-year (YOY), as of 30 June. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities. View analysts price targets for ABBV or view top-rated stocks among Wall Street analysts. AbbVie updated its FY 2024 earnings guidance on Friday, February, 10th. AbbVie says it will pay down debt of $4bn in 2023, which will "bring cumulative debt pay down ~$34bn", but the company is heavily reliant on maintaining an investment grade rating. Please. Neuroscience is one of AbbVie's most intriguing divisions and perhaps the hardest to model. Finally, eye-care - another division inherited from Allergan - has been performing well for AbbVie although I am not expecting particularly strong growth from the current product portfolio. Investors needn't panic however - Humira's replacements are expected by AbbVie's CEO to generate even higher revenues per annum. abbvie stock forecast 2022 - 2025 - 2030 - 2032 The company also successfully completed the acquisition of Syndesi Therapeutics SA in March. AbbVie (NYSE:ABBV) pays an annual dividend of $5.92 per share and currently has a dividend yield of 3.83%. We have also launched Skyrizi for PSA in rheumatology, where we're seeing strong utilization, which is driving accelerated share growth. AbbVie Stock: A Blue Chip You Cannot Afford To Miss, Yield 4.1% 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. As such I have downgraded my own growth expectations in the forecasting table above, reducing annual growth from 7.5%, to just 2.5%, after forecasting for $5bn revenues in FY22 - down 7.5% year-on-year. 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. On average, they expect the company's stock price to reach $161.12 in the next twelve months. By creating a free account, you agree to our, In Britain, warm hubs emerge to beat soaring energy costs, In Chicago, adapting electric buses to winters challenges, Global race to boost electric vehicle range in cold weather, Ukraine ally Kallas fights for reelection in Estonia vote, Paid express lanes grow more popular in once-reluctant South, Pot vote has Oklahoma hungry to rake in green from Texas, Home Depot Stock Earnings Slide, Long Term Value Still There, AbbVie Stock Still a Solid Buy Despite Challenges, Chief Financial Officer & Executive Vice President, BREAKING: Tiny biotech successfully treats blindness, Fed's Shocking New Plan to Control Your Money. Wallet Investor suggested that the price could hit $300.386 in June 2027. View ABBV analyst ratings or view top-rated stocks. I wrote this article myself, and it expresses my own opinions. AbbVie is one of the largest global Pharmaceuticals, with a market cap of >$265bn. Only you can design whether Abbvie stock is the right investment for you. Fawad Razaqzada, market analyst for City Index and FOREX.com, commenting to Capital.com, said: As of 30 June, analyst ratings compiled by MarketBeat shared different price targets for Abbvie stock. 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 firm's revenue for the quarter was up 1.6% compared to the same quarter last year. In the last four years, Johnson & Johnson's Free Cash Flow has fallen from $18.53B to $17.00B - a 8.28% decrease. Having so much debt in a prevailing inflationary environment is also unattractive. 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.