Please disable your ad-blocker and refresh. AbbVie has been working hard to ensure the 2 drugs it has developed to replace Humira - Skyrizi, which inhibits the pro-inflammatory cytokine IL23, and Rinvoq, a Janus Kinase (enzymes involved in immune cell function) inhibitor - are winning approvals and growing sales in Humira's markets. 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. Get short term trading ideas from the MarketBeat Idea Engine. call (03) 8658 0539 support.au@capital.com. For ABBVIE INC stock forecast for 2023, 10 predictions are offered for each month of 2023 with average ABBVIE INC stock forecast of $156.58, a high forecast of $160.07, and a low forecast of $152.24. Based on earnings estimates, ABBV will have a dividend payout ratio of 54.11% next year. This could present more profit potential for drugmakers as well as investors. To summarize, Humira may be going off-patent, but is more than capable of delivering double-digit billion revenues for another 3-4 years, and even in 2030, it could be amongst the top 20 best-selling drugs worldwide. Nineteen analysts predict that AbbVie's share price will increase in the coming year, reaching $165.00. 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 average price target represents a 6.33% change from the last price of $153.90. 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. For the next nine years, the forecast is for Revenue to grow by 3.57%. 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". 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. I write about Biotech, Pharma and Healthcare stocks and share investment tips. As we can see above one of either Skyrizi or Rinvoq has now been approved for all of the same indications as Humira is, except for Hidradenitis Suppurativa, although Rinvoq is undergoing a Phase study in this indication. 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. And never invest or trade money you cannot afford to lose. On average, they expect the company's stock price to reach $161.12 in the next twelve months. 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. 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. GSK Free Cash Flow Forecast for 2023 - 2025 - 2030. About the AbbVie, Inc. stock forecast. 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. And with a dividend yield of 4.9%, AbbVie is quite attractive for investors yearning for . That reflects uncertainty about what the future holds for AbbVie. Export data to Excel for your own analysis. (JPM Healthcare conference presentation), Skyrizi's performance has been particularly eye-catching. I/we have a beneficial long position in the shares of ABBV, BMY either through stock ownership, options, or other derivatives. On average, they predict the company's stock price to reach $161.12 in the next year. Finally I can present a target price for AbbVie stock in 2023 using DCF / EBITDA analysis. View which stocks are hot on social media with MarketBeat's trending stocks report. 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. Find me at my marketplace channel, Haggerston BioHealth - model portfolio + 4 exclusive stock tips every week. This indicates that AbbVie will be able to sustain or increase its dividend. All generate blockbuster <$1bn per annum sales - in Stelara's case >$9bn per annum, and in Enbrel's case, >$4.5bn. Sales are expected to recover in H2'22, however, and forecast year-on-year growth. 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. 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. As we can see, as per management's guidance revenues fall between 2022 and 2023, before recovering and growing in each year after. Skyrizi is a collaboration between Boehringer Ingelheim and AbbVie, with AbbVie leading development and commercialisation globally. approvals of Humira, Skyrizi, Rinvoq (AbbVie JPM Healthcare conference presentation). Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. The company provided earnings per share (EPS) guidance of $10.70- for the period. 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. According to analysts' consensus price target of $161.12, AbbVie has a forecasted upside of 3.2% from its current price of $156.06. Receive regular, detailed analysis focused on biotech and healthcare stocks. Abbvie Stock Forecast 2023 In the Biopharmaceutical Industry, Abbvie has been able to create a leadership position in the market in each business segment with different brand names in different business categories like Immunology, Hematologic Oncology, Neuroscience, Aesthetics, and Eye Care. 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. Snowflake Reports Weak Guidance: Is the Growth Snowflake Melting? Always conduct your own due diligence before investing. How do I arrive at my share price target? If youre new to trading, then youve probably heard the wrong thing about optionsthat theyre risky, unpredictable, or difficult. 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. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. Date. I'll also share some a forward income statement and discounted cash flow analysis that suggests the present value of AbbVie shares ought to trade as high as $176, implying that shares are presently discounted by as much as 18% to their true worth. 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. As we can see the immunology division consists of only 3 assets yet by my calculation, will likely account for 50% of AbbVie's revenues in 2022 (to calculate 2022 sales revenues by product, since we do not yet have final figures, I have used 9m 2022 figures and assumed Q4 revenues will be the average of the previous 3 quarters). In my model I have then reduced revenues by 20% between 2024 - 2026, and then by 10% per annum between 2027 - 2030. My No. On average, analysts rate AbbVie stock as a buy. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. The major market events for the week ahead right in your inbox. The total revenue in 2021 was $56.20 billion with a 31% operating margin. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. In the past three months, AbbVie insiders have sold more of their company's stock than they have bought. Teliso V is an antibody drug conjugate and a c-Met inhibitor. Among its many positions is sustainable operations so it can deliver life-changing therapies to those who need them most. It should be noted that the strength of the competition AbbVie faces from other Pharma's desperate to claim a larger share of the immunology markets after Humira's LOE is fierce - Eli Lilly's (LLY) Olumiant, Pfizer's (PFE) Zeljanz, Amgen's Otezla, Bristol Myers Squibb's (BMY) Zeposia, Johnson & Johnson's (JNJ) Tremfya, Novartis' (NVS) Cosentyx and Regeneron (REGN) / Sanofi's (SNY) Dupixent to name a few. 2023 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Should I buy or sell AbbVie stock right now? I wrote this article myself, and it expresses my own opinions. The five-year dividend growth rate is just below 18%. Specifically, they have bought $0.00 in company stock and sold $23,102,528.00 in company stock. AbbVie (NYSE:ABBV) has a market capitalization of $276.13 billion and generates $58.05 billion in revenue each year. Enjoy your holiday weekend and catch up on our most read stories this week. Please. I have no business relationship with any company whose stock is mentioned in this article. 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. View AbbVie's Short Interest. The company can be reached via phone at (847) 932-7900 or via fax at 302-655-5049. I hope to see you there. See what's happening in the market right now with MarketBeat's real-time news feed. The average analyst rating for AbbVie stock from 34 stock analysts is "Buy". 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. The companys operations span 20 countries, treating more than 60 million people and 40 conditions annually. 326 E 8th St #105, Sioux Falls, SD 57103 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. The company is a member of the Fortune 100 and one of the Fortune 100s Best Companies To Work For. Get 30 Days of MarketBeat All Access Free, Sign in to your free account to enjoy these benefits. The company earns $11.84 billion in net income (profit) each year or $6.61 on an earnings per share basis. That is substantially higher than the 12% CAGR achieved between 2018 - 2022, although that period includes the additional revenues from Allergan. There has been a raft of price-moving news for Abbvie, which may positively affect the stock price. What is ABBV's Earnings Per Share (EPS) forecast for 2023-2025? I am not receiving compensation for it (other than from Seeking Alpha). The most recent increase was . Please. 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. Your current $100 investment may be up to $188.28 in 2028. 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. All times are ET. Nevertheless, after applying the discount factor, I calculate a share price target of $151 based on DCF analysis and a slightly higher figure of $168 based on EBITDA analysis. 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? Zscaler, Inc Plummets, Is It Time To Buy The Dip? 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. writing - trading down slightly from its all-time high of >$160 achieved in early December last year. Read our dividend analysis for ABBV. 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 the next year, analysts expect Free Cash Flow to reach $26.97B - an increase of 58.68%. The stocks growth marks a significant outperformance over the broader markets. 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. View the latest news, buy/sell ratings, SEC filings and insider transactions for your stocks. It should be noted however that, with ~$12bn near-term debt falling due, and long-term debt of ~$61bn - most of it due to the $66bn acquisition of Allergan, completed in 2020, AbbVie has some hefty interest expense payments to make - $15bn between 2022 and 2027, I estimate, and the level of debt makes it tough for the company to invest in M&A deals. This included an unfavourable impact of $0.08 a share related to acquired in-process research and development (IPR&D) and milestones expenses incurred during the March quarter. Having so much debt in a prevailing inflationary environment is also unattractive. 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. Allergan plc was an Ireland-based pharmaceutical company focused on health-oriented aesthetic products and is the owner of Botox. The "King Of Quants" sees 10X potential Eric Fry believes he just discovered America's next "Wealth Supercluster" and it's forming in the place you'd least expect. To see all exchange delays and terms of use please see Barchart's disclaimer. I believe AbbVie is likely 15 - 20% undervalued at current price. AbbVie's stock was trading at $161.61 on January 1st, 2023. AbbVie is a leader in ESG and sustainability. I am not receiving compensation for it (other than from Seeking Alpha). 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. I write about Biotech, Pharma and Healthcare stocks and share investment tips. Our daily ratings and market update email newsletter. The consensus among Wall Street research analysts is that investors should "hold" ABBV shares. Eye Care, Other products Division Projected Revenues to 2030 (my table and assumptions ). The company is focused on research and has a number of collaborations and partnerships to that end. The company projects the U.S. toxin market (where Botox is the top product) will decline by mid-single digits. In terms of market cap, it ranks third behind Pfizer ( PFE) and Novo Nordisk ( NVO ). In the next year, analysts predict that Revenue will reach C$253.83M - an increase of 3.50%. View the best growth stocks for 2023 here. Skyrizi has also been approved to treat Crohn's Disease, an added bonus and another multi-billion dollar market. The firm earned $15.12 billion during the quarter, compared to the consensus estimate of $15.30 billion. 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. RHHBY vs. ABBV: Which Stock Is the Better Value Option? Post-spin, AbbVie emerged as a research-based biopharma that has more than doubled in size. The company officially IPOd on January 2, 2013; contrary to criticisms, the move was solely to protect the parent company from expiring patents. 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. Let's begin our analysis with the immunology division. contact@marketbeat.com AbbVie income statement forecast (My table and assumptions). 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. The next two approvals - for Navitoclax in Myelofibrosis and Teliso V in non squamous non-small cell lung cancer ("NSCLC") - are anticipated by management in 2024. 580 employees have rated AbbVie Chief Executive Officer Richard A. Gonzalez on Glassdoor.com. I wrote this article myself, and it expresses my own opinions. Please disable your ad-blocker and refresh. (my tables and forecasting). You should do your own research and never invest money you cannot afford to lose. 164.71 0.00 0.00%. AbbVie discounted cash flow analysis. It pays a dividend yield of 3.83%, putting its dividend yield in the top 25% of dividend-paying stocks. My detailed modeling suggests there is 15-20% upside to look forward to in the short term and that ABBV stock remains a solid long-term buy opportunity for investors. Projections are based on making fundamental and technical studies of the ABBV stock price performance. There is no mention of Women's Health in the Q2'22 earnings call or in the 10-Q submission to the SEC, or any of the drugs within it, yet the divisions have not (to the best of my knowledge) been sold, despite rumors it was put up for sale at ~$5bn. AbbVie made the bold decision to take on a heavy debt load and bid for Allergan, with the deal being completed in 2020. The company had recorded a $4.7 billion increase in the contingent consideration liability related to Skyrizi last year. Morningstar: 2019 Morningstar, Inc. All Rights Reserved. Trading CFDs is high risk and is not suitable for everyone. Neurology also looks strong although aesthetics, eye care and oncology have something to prove. ABBV Stock 12 Months Forecast. Eli Lilly has long been a reliable stock, but with the company's impressive product pipeline, the stock could hold significant potential in the near term. View our ABBV earnings forecast. 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. 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. AbbVie's Dividend and Valuation. 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. Among the many avenues of research and innovation are the advancement of precision medicine or pMedicine. Shares are consolidating with a buy. 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. The company reported its first revenue for Botox competitor Daxxify. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Your password must be at least 8 characters long and contain at least 1 number, 1 letter, and 1 special character. AbbVie Inc. (NYSE:ABBV) posted its earnings results on Thursday, February, 9th. z o.o., AbbVie Spain S.L., AbbVie Stemcentrx LLC, AbbVie Trading S.R.L., AbbVie Trustee Company Limited, AbbVie Tbbi lalar Sanayi ve Ticaret Limited irketi, AbbVie UAB, AbbVie UK Biopharmaceuticals Ltd, AbbVie UK Holdco Limited, AbbVie UK Ltd, AbbVie US Holdings LLC, AbbVie US LLC, AbbVie Venezuela B.V., AbbVie Venezuela Holdings B.V., AbbVie Ventures LLC, AbbVie d.o.o., AbbVie s.r.o., Aeropharm Technology LLC, Allergan, BioDisplay Technologies Inc., Fournier Laboratories Ireland Ltd., Fremont Holding L.L.C., Fundacin AbbVie, IEP Pharmaceutical Devices LLC, ImmuVen, KOS Pharmaceuticals Inc., Knoll LLC, Knoll Pharmaceutical Company, Life Properties Inc., Mavupharma, Organics L.L.C., Pharmacyclics (Europe) Limited, Pharmacyclics (Shanghai) Management Consulting Services Limited, Pharmacyclics Cayman Ltd., Pharmacyclics Inc, Pharmacyclics LLC, Pharmacyclics Switzerland GmbH, Rowell Laboratories Inc., S.C. AbbVie S.R.L., Sapphire Merger Sub Inc., Stem CentRx, Stemcentrx Cayman Ltd., Suffolk Merger Sub Inc., and Unimed Pharmaceuticals LLC. This suggests a possible upside of 3.2% from the stock's current price. 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. 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. American biopharmaceutical company Abbvie (ABBV) has surged nearly 13% year to date (YTD), and 35% year-over-year (YOY), as of 30 June. 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. These products are not suitable for everyone and you should therefore consider your objectives, financial situation, needs and experience with these products before investing in them. The obvious advantages of a "one and done" permanent cure make them potentially very lucrative therapies. 8.05% The Abbvie stock forecast for 2025 had the price at $259.018. We expect that to happen in 2027 with continued significant growth anticipated in the following years.