The median. 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. I'm on twitter @edmundingham. We expect that to happen in 2027 with continued significant growth anticipated in the following years. On average, analysts forecast that ABBV's EPS will be $11.80 for 2023, with the lowest EPS . Rinvoq's progress has been a little more circumspect, but almost as impressive. The eye-disease markets are very large - Regeneron's Eylea is a >$7bn per annum selling drug and AMD markets are >$20bn in size. That is substantially higher than the 12% CAGR achieved between 2018 - 2022, although that period includes the additional revenues from Allergan. Read the conference call transcript. AbbVie Aesthetics / Neurology revenues forecasts to 2030 (my table and assumptions) . 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. The company is focused on research and has a number of collaborations and partnerships to that end. To date, the company had invested more than $50 billion into research through more than 250 partnerships. How often does AbbVie pay dividends? Identify stocks that meet your criteria using seven unique stock screeners. 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. 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. PMeds are designed not only to target the specific causes of diseases, often at the genetic level, but the patients that are most likely to benefit from them. 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. The companys original winner, Humira, is still the number one revenue source but the portfolio has been greatly expanded. AbbVie has 5 focus areas for its research and products. Within the oncology division sales of Imbruvica fell 17% year-on-year. 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. ABBV-916 is targeting Alzheimer's and it is an anti-amyloid antibody, with a similar mechanism of action ("MoA") to recently approved Leqembi, developed by Biogen (BIIB) / Eisai, and likely soon-to-be approved Donanemab, developed by Eli Lilly. The major market events for the week ahead right in your inbox. Your current $100 investment may be up to $188.28 in 2028. All generate blockbuster <$1bn per annum sales - in Stelara's case >$9bn per annum, and in Enbrel's case, >$4.5bn. The median estimate represents a +5.72% increase from the last price of 156.07. 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. 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. In my model I have then reduced revenues by 20% between 2024 - 2026, and then by 10% per annum between 2027 - 2030. Revance Therapeutics gapped up 54.34% on January 9, and built upon those gains in February. The firm's revenue for the quarter was up 1.6% compared to the same quarter last year. AbbVie trades on the New York Stock Exchange (NYSE) under the ticker symbol "ABBV.". Richard A. Gonzalez has an approval rating of 88% among the company's employees. 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 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. Within eye care, Restasis was a major disappointment, and the entire division seems to be struggling, with total revenues falling from ~$920m in Q2'21, to ~$720m in Q2'22. As we can see, AbbVie is likely to generate some impressive cash flow based on its operating margins, which begin at 32%. All rights reserved. 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. What other stocks do shareholders of AbbVie own? Get 30 Days of MarketBeat All Access Free, Sign in to your free account to enjoy these benefits. I/we have a beneficial long position in the shares of ABBV, BMY either through stock ownership, options, or other derivatives. Trading CFDs is high risk and is not suitable for everyone. Zscaler, Inc Plummets, Is It Time To Buy The Dip? The consensus among Wall Street research analysts is that investors should "hold" ABBV shares. 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. AbbVie product revenue forecasts to 2030. 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. Retail sales were up but so was inflation which meant more volatility for stocks. There has been a raft of price-moving news for Abbvie, which may positively affect the stock price. First we can take a quick look at what a forward income statement for AbbVie might look like to 2030. That reflects uncertainty about what the future holds for AbbVie. I wrote this article myself, and it expresses my own opinions. Teliso V is an antibody drug conjugate and a c-Met inhibitor. In terms of market cap, it ranks third behind Pfizer ( PFE) and Novo Nordisk ( NVO ). For the next year, analysts predict that Free Cash Flow will reach 6.91B - an increase of 1.94%. 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. 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. ABBV closed at $152.49 on 29 June, which was above its 200-day moving average (MA) of 136.42, indicating a bullish signal for the stocks price movement ahead, according to data from TradingView. 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. 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. In the next year, analysts predict that Revenue will reach C$253.83M - an increase of 3.50%. PEG Ratios above 1 indicate that a company could be overvalued. Allergan was a troubled company in many ways, but there is no doubting the strength of its products and pipeline. As of 2023 February 22, Wednesday current price of ABBV stock is 151.340$ 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. Aurora Cannabis Revenue Forecast for 2023 - 2025 - 2030. AbbVie has a P/B Ratio of 15.97. Drug pricing is another issue - there is bipartisan, and international pressure on US Pharmas to reduce drug pricing, particularly outside of the US. 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In my opinion, based on the current portfolio, AbbVie shares look undervalued below $160, but the upside above that price is limited, unless management is able to commercialize more products between now and the end of the decade, in order to achieve what looks like a very ambitious goal in driving high-single-digit revenue growth in the second half of this decade. Projections are based on making fundamental and technical studies of the ABBV stock price performance. View ABBV analyst ratings or view top-rated stocks. 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. 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 have also launched Skyrizi for PSA in rheumatology, where we're seeing strong utilization, which is driving accelerated share growth. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. 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. target price for AbbVie stock based on DCF / EBITDA multiple analysis (my table and assumptions). First of all, as shown in the table above I forecast product sales out to 2030. 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. The lowest target is $136.35 and the highest is $210. The dividend payout ratio of AbbVie is 89.56%. z o.o., AbbVie Productos Farmacuticos Limitada, AbbVie Products LLC, AbbVie Promoo L.da, AbbVie Pte. Finally, AbbVie was able to raise its financial . Get short term trading ideas from the MarketBeat Idea Engine. AbbVie has been the subject of 9 research reports in the past 90 days, demonstrating strong analyst interest in this stock. When looking for ABBV stock forecasts, its important to bear in mind that analysts forecasts can be wrong. On average, they expect the company's stock price to reach $161.12 in the next twelve months. 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. 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. Pharmaceuticals are often valued based on a philosophy of "jam tomorrow" as opposed to jam today i.e. Free Stock Analysis Report: See The True Value of Any Stock, The Best Strategy For Your Small Trading Account. Nineteen analysts predict that AbbVie's share price will increase in the coming year, reaching $165.00. 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. Invest alongside the model portfolio or simply access the investment bank-grade financial models and research. With AbbVie seemingly very confident of approvals for all 3 of these drugs, and Gonzalez suggesting they could form the basis of a "$6 billion kind of franchise" I have modelled for such an outcome by 2030. I take the total revenue figure from each year and plug it into an income statement forecast as follows: AbbVie income statement forecast. 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. 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. According to analysts' consensus price target of $161.12, AbbVie has a forecasted upside of 3.2% from its current price of $156.06. call (03) 8658 0539 support.au@capital.com.
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