The companys original winner, Humira, is still the number one revenue source but the portfolio has been greatly expanded. In the past three months, AbbVie insiders have sold more of their company's stock than they have bought. AbbVie sees strong 2022 earnings as Botox, Skyrizi power profit beat The obvious advantages of a "one and done" permanent cure make them potentially very lucrative therapies. I have downgraded my forecasts to 2016 accordingly however to 2% annual growth. Your current $100 investment may be up to $188.28 in 2028. Enjoy your holiday weekend and catch up on our most read stories this week. In my model I have then reduced revenues by 20% between 2024 - 2026, and then by 10% per annum between 2027 - 2030. 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. In the last two years, GSK's Free Cash Flow has grown by 0.37%, rising from 6.76B to 6.78B. I/we have a beneficial long position in the shares of ABBV, BMY either through stock ownership, options, or other derivatives. 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. Most stock quote data provided by BATS. AbbVie projected sales - immunology (my forecasts and assumptions). Excluding items, AbbVie earned $3.31 per share, beating estimates of $3.29 . Nevertheless, AbbVie is clearly under huge pressure to protect its dominance in the immunology markets, and the signs are it has been able to do just that thanks to the launches of 2 new drugs - Skyrizi and Rinvoq. I have plugged my revenue expectations into this table knowing that they closely match AbbVie management's own expectations based on what they have said in public. This suggests a possible upside of 3.8% from the stock's current price. Year-to-date, the stock was up slightly more than 12% while benchmark global indices have all fallen sharply amid surging inflation, interest rate hikes and slowdown worries. 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. 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. Within the oncology division sales of Imbruvica fell 17% year-on-year. AbbVie stock was up after posting a mixed fourth-quarter earnings report, but with the company's patent expiring on Humira, the stock is a hold, February 24, 2023|americanbankingnews.com, February 23, 2023|americanbankingnews.com. AbbVie Aesthetics / Neurology revenues forecasts to 2030 (my table and assumptions). What is a Good Dividend Yield? 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. AbbVie (NYSE:ABBV) has a market capitalization of $276.13 billion and generates $58.05 billion in revenue each year. It had an upside potential of 4.76%, based on the closing price of $152.49 on 29 June. This figure could eventually end up substantially larger - according to Gonzalez: We've begun to see some very exciting data from several solid tumor programs, including our anti-GARP antibody ABBV-151, and our PTK7 ADC, ABBV-647. I write about Biotech, Pharma and Healthcare stocks and share investment tips. 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". That is interesting to me as I think it suggests management will need to commercialize more assets if it wants to hit that target. Abbvie has a strong pipeline of projects ahead, and has recently received US FDA approval of its ulcerative colitis drug Rinvoq. 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. 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. I'm on twitter @edmundingham. 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. 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. My calculation is that Humira revenues in 2023 will be 80% of the 2022 figure, or $16.7bn. AbbVie Inc. (ABBV) Stock Forecast & Price Prediction For 2023 2024 2025 AbbVie Fair Value Forecast for 2023 - 2025 - 2030 In the last two years, AbbVie's Price has grown, increasing from $91.55 to $130.05 - an increase of 42.06%. Our first quarter results highlight the diversity of our portfolio and include compelling performance from key growth drivers Skyrizi, Rinvoq, Aesthetics and Neuroscience. 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. 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. The surge in revenues can primarily be attributed to its Allergan. AbbVie (NYSE:ABBV) pays an annual dividend of $5.92 per share and currently has a dividend yield of 3.83%. As of 2023 February 22, Wednesday current price of ABBV stock is 151.340$ 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. The division delivered >$1.65bn in sales in Q2'22, up >15% year-on-year, and with Vraylar, Ubrelvy and possibly Qulipta all earmarked for blockbuster sales - $4bn in the case of Vraylar - my forecasting suggests this division could double in size by 2030, from ~$6.6bn revenues generated in FY22, to >$13.5bn by 2030. AbbVie stock is one of the most well-known pharmaceutical companies. All generate blockbuster <$1bn per annum sales - in Stelara's case >$9bn per annum, and in Enbrel's case, >$4.5bn. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. One of the few pain points AbbVie experienced during a year of portfolio wide growth in 2022 was the decline in the revenue contribution from Imbruvica, approved to treat various types of lymphoma. ABBV Stock Forecast Price Target for 2024 TradingView 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. AbbVie Stock Forecast 2023 - 2025 - 2030 | StockForecast.com 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. Skyrizi - which inhibits the activities of IL-23 - a naturally occurring cytokine that is involved in inflammatory and immune responses - and Rinvoq - a member of the janus kinase inhibitor drug class - fit this profile. The company reported $3.60 EPS for the quarter, topping the consensus estimate of $3.54 by $0.06. The Abbvie stock forecast for 2025 had the price at $259.018. We expect proof-of-concept data from roughly a dozen additional early stage oncology opportunities over the next couple of years. This rating has held steady since February, when it was unchanged from a Buy rating.Move your mouse over pastmonths for detail. Nineteen analysts predict that AbbVie's share price will increase in the coming year, reaching $165.00. Noting the stellar earnings reported by the firm in the first quarter, Richard A. Gonzalez, chairman and CEO of AbbVie, said: An overview of the companys net revenue in Q1 shows a major portion of revenue came from its immunology portfolio, which brought in $6.14bn. ET comments Over the next nine years, experts believe that GSK's Free Cash Flow will grow at a rate of 1.98%. This indicates that the company will be able to sustain or increase its dividend. 2023 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. 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. 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. Is AbbVie Stock A Buy Or A Sell With Humira Rivals Looming? approvals of Humira, Skyrizi, Rinvoq (AbbVie JPM Healthcare conference presentation). 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. The risks associated with aesthetics are that the industry can be severely buffeted by economic headwinds, as these products are more consumer focused and are often considered an unnecessary expenditure in times of hardship. 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. The major market events for the week ahead right in your inbox. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. I have no business relationship with any company whose stock is mentioned in this article. If you rely on the information on this page then you do so entirely on your own risk. On average, they predict the company's stock price to reach $161.12 in the next year. This represents a $5.92 dividend on an annualized basis and a dividend yield of 3.79%. Price target. The companys operations span 20 countries, treating more than 60 million people and 40 conditions annually. psoriatic arthritis at a lower dose, again with a comparable safety profile, and has also won approval in a field where Humira has not, namely Atopic Dermatitis. Their ABBV share price forecasts range from $140.00 to $200.00. 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. In the next year, analysts expect Free Cash Flow to reach $26.97B - an increase of 58.68%. Among the many avenues of research and innovation are the advancement of precision medicine or pMedicine. AbbVie's mailing address is 1 NORTH WAUKEGAN ROAD, NORTH CHICAGO IL, 60064. The median estimate represents a +5.72% increase from the last price of 156.07. abbvie stock forecast 2022 - 2025 - 2030 - 2032 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. This year is off to a strong start. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. The average Abbvie stock price prediction forecasts a potential upside of 7.07% from the current ABBV share price of $155.27. AbbVie could be the biggest global Pharma by revenue generation in 2028. 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. Capital Com Australia Pty Ltd (ABN 47 625 601 489) is a company registered in Australia and regulated by the Australian Securities and Investments Commission (ASIC) under AFSL 513393. AT&T Inc. (T) stock forecast and price target Find the latest AT&T Inc. T analyst stock forecast, price target, and recommendation trends with in-depth analysis from research reports. The dividend payout ratio of AbbVie is 89.56%. View analysts price targets for ABBV or view top-rated stocks among Wall Street analysts. 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. 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. (my table and forecasts). 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. I am not receiving compensation for it (other than from Seeking Alpha). The company originated as the bio-pharma segment of Abbott Laboratories and was spun off in late 2012. AbbVie has been increasing its dividend for 51 years. call (03) 8658 0539 [email protected]. The important point here is that physicians will not necessarily be under any pressure to switch patients from Humira to a biosimilar, given, as Gonzalez puts it: there won't be any difference between the biosimilar and Humira from a co-pay standpoint or any kind of a step editing. (JPM Healthcare conference presentation), Skyrizi's performance has been particularly eye-catching. The Abbvie stock forecast for 2025 had the price at $259.018. If signs point to that happening I will likely be revising my target price upwards again, but I am playing it more conservative as nobody truly knows the scale of losses after the Humira LOE. Disclosure: I/we have a beneficial long position in the shares of BMY, GILD, ABBV either through stock ownership, options, or other derivatives. Ever since its split from Abbott Laboratories (ABT) in 2012 AbbVie (NYSE:ABBV) has delivered strong returns for investors - its stock price having risen overall from $30, to $149 per share at the time of writing - trading down slightly from its all-time high of >$160 achieved in early December last year. As with debt, if approval and revenue targets aren't met, it can quickly result in a loss of faith in the company. AbbVie's total revenue grew a solid 51% to $50.2 billion over the last twelve month period, compared to $33.0 billion in 2019. Currently, AbbVie sees a significantly higher portion of every dollar end up as cash to do with what they please. Identify stocks that meet your criteria using seven unique stock screeners. According to CEO Gonzalez: Over the long-term, aesthetics continues to be an extremely attractive underpenetrated market with significant growth potential. The company is scheduled to release its next quarterly earnings announcement on Friday, May 5th 2023. A Warner Bros. 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. Trial results demonstrated an overall response rate of 63% and a median duration of response of 12 months, where 39% of patients had already tried a CAR-T cell therapy. To be sure, AbbVie is modeling for a tough year in 2023 for the aesthetics market. 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. 580 employees have rated AbbVie Chief Executive Officer Richard A. Gonzalez on Glassdoor.com. That figure suggests a forward Price to Earnings ("P/E") ratio of ~10x, which is well below the US Big Pharma sector average of ~23x, although it should be noted that the GAAP/non-adjusted EPS may be only significantly lower than the adjusted figure, based on adjusted EPS of $6.52 across H1'22, and GAAP EPS of $3.03 over the same period. View ABBV analyst ratings or view top-rated stocks. To see all exchange delays and terms of use please see Barchart's disclaimer. Psoriatic arthritis is also adding significantly to Skyrizi's momentum, where we are now approved in 54 countries. AbbVie's Dividend and Valuation. 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. Export data to Excel for your own analysis. As per management's guidance, I am modelling for $5.7bn of revenues in 2023, with growth beginning to accelerate substantially from 2025 / 26 onwards. 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. 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. Gene therapies have been a long time coming, having first been popularized in the early noughties. 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. 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. Ltd., AbbVie Pty Ltd, AbbVie Purchasing LLC, AbbVie Real Estate Management GmbH, AbbVie Research B.V., AbbVie Resources Inc., AbbVie Resources International Inc., AbbVie Respiratory LLC, AbbVie S. de R.L., AbbVie S.A., AbbVie S.A., AbbVie S.A.S., AbbVie S.R.L., AbbVie S.r.l., AbbVie S. r.l., AbbVie SA, AbbVie SAS, AbbVie SIA, AbbVie Sarl, AbbVie Sdn. (ABBV), MarketBeat Week in Review 2/13 - 2/17 (ABBV), The 3 Best Pharma Stocks to Buy for Big Gains in 2023 (ABBV), How Abbott Labs, AbbVie Could Profit on Seizure Drug Formula (ABBV), AbbVie Has a Mixed Outlook After Mixed Earnings, Q4 2022 AdTheorent Holding Company Inc Earnings Call. The average price target represents a 6.33% change from the last price of $153.90. The company's average rating score is 2.44, and is based on 7 buy ratings, 9 hold ratings, and no sell ratings. We have also launched Skyrizi for PSA in rheumatology, where we're seeing strong utilization, which is driving accelerated share growth. AbbVie discounted cash flow analysis. 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. For the next year, analysts predict that Free Cash Flow will reach 6.91B - an increase of 1.94%. Abbvie Stock Forecast | Is Abbvie a Good Stock to Buy? - Capital All times are ET. Finally I can present a target price for AbbVie stock in 2023 using DCF / EBITDA analysis. As of 2022, AbbVie employed more than 50,000 people globally with 21,000 in STEM-related positions. I take the total revenue figure from each year and plug it into an income statement forecast as follows: AbbVie income statement forecast. The dividend payout ratio is 89.56%. With AbbVie's revenues accelerating past $80bn in 2030 (by my calculation), and cash flow generated in that year being >$25bn, after applying discount factors for each year I reach a price target of $176 - the average of DCF - $162 per share - and EBITDA - $189 per share - calculations. This suggests a possible upside of 3.2% from the stock's current price. AbbVie trades on the New York Stock Exchange (NYSE) under the ticker symbol "ABBV.". These are Immunology, Oncology, Neurology, Virology and Eye Care.
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