Forecast target price for 03-06-2023: $ 152.58. All Rights Reserved. That was below AbbVie stock analysts' view for $14.16. The company officially IPOd on January 2, 2013; contrary to criticisms, the move was solely to protect the parent company from expiring patents. Negative dynamics for AbbVie shares will prevail with possible volatility of 1.976%. The obvious advantages of a "one and done" permanent cure make them potentially very lucrative therapies. Neuroscience looks highly promising too, and aesthetics capable of driving some respectable growth driven by old stager Botox. 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. What that means is, essentially it will be on formulary with biosimilars, but there won't be any difference between the biosimilar and Humira from a co-pay standpoint or any kind of a step editing. AbbVie is a leader in ESG and sustainability. As of February 15th, there was short interest totaling 11,710,000 shares, an increase of 13.7% from the January 31st total of 10,300,000 shares. 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. And we remain confident in our ability to achieve total sales of more than $9 billion by 2029. Please disable your ad-blocker and refresh. Forecast . The company reported its first revenue for Botox competitor Daxxify. The stock projection varied from the low price target of $135 to the high of $200. Abbvie stock price has put up an impressive performance in 2022. z o.o., AbbVie Productos Farmacuticos Limitada, AbbVie Products LLC, AbbVie Promoo L.da, AbbVie Pte. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Refer to our. The dividend payout ratio is 89.56%. 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. writing - trading down slightly from its all-time high of >$160 achieved in early December last year. All generate blockbuster <$1bn per annum sales - in Stelara's case >$9bn per annum, and in Enbrel's case, >$4.5bn. 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. What is ABBV's Earnings Per Share (EPS) forecast for 2023-2025? 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. 1 dividend stock for a LIFETIME of income. 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. 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. And it couldnt be more wrong! 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. 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". 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. With Skyrizi and Rinviq - two assets developed in-house - performing so well, however, perhaps we should give management the benefit of the doubt. AbbVie's mailing address is 1 NORTH WAUKEGAN ROAD, NORTH CHICAGO IL, 60064. That is substantially higher than the 12% CAGR achieved between 2018 - 2022, although that period includes the additional revenues from Allergan. 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. AbbVie product revenue forecasts to 2030. I have no business relationship with any company whose stock is mentioned in this article. Receive ABBV Stock News and Ratings via Email. Teliso V is an antibody drug conjugate and a c-Met inhibitor. 8.05% Your current $100 investment may be up to $188.28 in 2028. Find me at my marketplace channel, Haggerston BioHealth - model portfolio + 4 exclusive stock tips every week. 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. This indicates that the company will be able to sustain or increase its dividend. . 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. Furthermore, it seems sales of Lupron and Synthroid have joined the "All Other" section, which has generated $2.2bn of revenues in the first half of 2022, versus $1.5bn in the first half of 2021. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. 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. Payout ratios above 75% are not desirable because they may not be sustainable. When I began this post it was in my mind to give AbbVie stock a "Hold" rating owing to an underwhelming - on some levels - set of Q2'22 earnings, some concerns around high revenue generating products such as Imbruvica, Juvederm, and Restasis, the disappearance of the Women's Health division, the imminent LOE for Humira and the high levels of debt. View the latest news, buy/sell ratings, SEC filings and insider transactions for your stocks. Excluding items, AbbVie earned $3.31 per share, beating estimates of $3.29 . Upgrade to MarketBeat Daily Premium to add more stocks to your watchlist. And never invest or trade money you cannot afford to lose. 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. 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. 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 rights reserved. In this post I model AbbVie product sales to 2030 - including pipeline assets - and use discounted cash flow analysis to calculate a present day share price target. The company had recorded a $4.7 billion increase in the contingent consideration liability related to Skyrizi last year. 164.71 0.00 0.00%. Your password must be at least 8 characters long and contain at least 1 number, 1 letter, and 1 special character. Investors are already flocking there for a chance at 1,000%+ returns. And with a dividend yield of 4.9%, AbbVie is quite attractive for investors yearning for . Please. If you have an ad-blocker enabled you may be blocked from proceeding. 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. That certainly won't derail the oncology division however. As with debt, if approval and revenue targets aren't met, it can quickly result in a loss of faith in the company. Richard A. Gonzalez has an approval rating of 88% among the company's employees. On the negative side of things, we can see that AbbVie is no longer breaking out sales within its Women's Health division, with revenues lumped into the "all other section, presumably. As we can see, AbbVie is likely to generate some impressive cash flow based on its operating margins, which begin at 32%. Read our dividend analysis for ABBV. We expect that to happen in 2027 with continued significant growth anticipated in the following years. CNN Sans & 2016 Cable News Network. 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. It had an upside potential of 4.76%, based on the closing price of $152.49 on 29 June. Based on aggregate information from My MarketBeat watchlists, some companies that other AbbVie investors own include Intact Financial (IFC), Constellation Software (CSU), AutoCanada (ACQ), Alimentation Couche-Tard (ATD.B), Vermilion Energy (VET), AT&T (T), Bristol-Myers Squibb (BMY), Wheaton Precious Metals (WPM), Rogers Communications (RCI) and Open Text (OTEX). 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. 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. 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. You should consider whether you understand how CFDs work and can afford the risks. Retail sales were up but so was inflation which meant more volatility for stocks. The AbbVie of today has 5 thriving divisions - Immunology, Oncology, Neuroscience, Aesthetics, and Eye Care - with the latter 3 divisions acquired from Allergan as part of AbbVie's $63bn takeover of that company. Forecasts shouldnt be used as a substitute for your own research. 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. Export data to Excel for your own analysis. The company is a member of the Fortune 100 and one of the Fortune 100s Best Companies To Work For. The analysts 12-month consensus ABBV stock price target was $159.75. On average, they predict the company's stock price to reach $161.12 in the next year. The company can be reached via phone at (847) 932-7900 or via fax at 302-655-5049. 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. Management puts this down to "delayed market recovery for new patients starting therapy in Chronic Lymphocytic Leukemia ("CLL") and increasing competition" and has downgraded its FY22 guidance as a result. . The company didn't offer a . Based on earnings estimates, ABBV will have a dividend payout ratio of 54.11% next year. Receive regular, detailed analysis focused on biotech and healthcare stocks. AbbVie's free cash flow yield is 10.5% compared to 4.3% for Johnson & Johnson . In-depth profiles and analysis for 20,000 public companies. Earnings for AbbVie are expected to decrease by -0.55% in the coming year, from $11.00 to $10.94 per share. I wrote this article myself, and it expresses my own opinions. I have been maintaining a revenue forecasting table for AbbVie's products which I have amended based on Q2'22 and H1'22 results, and the slightly downgraded guidance issued for 2022 - management now expects adjusted earnings per share ("EPS") of $13.78 - $13.98, representing growth of 17% at the midpoint. 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. 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. 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. 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 firm's revenue for the quarter was up 1.6% compared to the same quarter last year. AbbVie has been the subject of 9 research reports in the past 90 days, demonstrating strong analyst interest in this stock. I have no business relationship with any company whose stock is mentioned in this article. Thus, it is likely that ABBV will continue to find support on the dips in this type of market environment.. Get short term trading ideas from the MarketBeat Idea Engine. To be sure, AbbVie is modeling for a tough year in 2023 for the aesthetics market. Build a CFD portfolio with your favourite companies. 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. ABBV Stock 12 Months Forecast. Specifically, they have bought $0.00 in company stock and sold $23,102,528.00 in company stock. We expect proof-of-concept data from roughly a dozen additional early stage oncology opportunities over the next couple of years. Please log in to your account or sign up in order to add this asset to your watchlist. You should do your own research and never invest money you cannot afford to lose. Most stock quote data provided by BATS. Today, AbbVie operates as a diversified multi-national pharmaceutical company with a patient-centric approach to research. AbbVie has a PEG Ratio of 3.51. The P/E ratio of AbbVie is 23.61, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 126.03. I wrote this article myself, and it expresses my own opinions. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. Aurora Cannabis Revenue Forecast for 2023 - 2025 - 2030. As of 2023 February 22, Wednesday current price of ABBV stock is 151.340$ 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. 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. 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. Discovery Company. Always conduct your own due diligence before investing. For the next nine years, the forecast is for Revenue to grow by 3.57%. If you have an ad-blocker enabled you may be blocked from proceeding. 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. See what's happening in the market right now with MarketBeat's real-time news feed. call (03) 8658 0539 support.au@capital.com. on the strength of its future rather than present portfolio. ET comments 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". View our ABBV earnings forecast. 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. Find me at my marketplace channel, Haggerston BioHealth - model portfolio + 4 exclusive stock tips every week. All times are ET. 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. (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. In February, a Phase 3 induction study saw positive top-line results. This suggests a possible upside of 3.8% from the stock's current price. 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. If you rely on the information on this page then you do so entirely on your own risk. Data from two Phase 3 induction studies and one maintenance study supported the approval. AbbVie updated its FY 2024 earnings guidance on Friday, February, 10th. In other words, no Humira, no problem! There are currently 9 hold ratings and 7 buy ratings for the stock. Different trading strategies will suit different investment goals with short or long-term focus. In the last two years, GSK's Free Cash Flow has grown by 0.37%, rising from 6.76B to 6.78B. The Abbvie stock forecast for 2025 had the price at $259.018. 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. Pessimistic target level: 151.42 Optimistic target level: 154.48 ABBV (ABBV) Monthly Stock Prediction for 2023 Full forecast for 2023 AbbVie forecast for this year 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. A Warner Bros. Their ABBV share price forecasts range from $140.00 to $200.00. Having so much debt in a prevailing inflationary environment is also unattractive. AbbVie discounted cash flow analysis. The pharma industry witnessed solid growth amid the pandemic. AbbVie declared a quarterly dividend on Thursday, February 16th. Sales are expected to recover in H2'22, however, and forecast year-on-year growth. Abbvie Inc quote is equal to 152.710 USD at 2023-02-27. 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". 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. Zscaler, Inc Plummets, Is It Time To Buy The Dip? Currently, the company has a "stable" rating, but that must be maintained or investors will perceive the company as unsafe to invest in and that will drag the share price down rapidly. Move your mouse over a quarter or year to see how estimates have changed over time. Join the 500.000+ traders worldwide that chose to trade with Capital.com, Also you can contact us: Projections are based on making fundamental and technical studies of the ABBV stock price performance. Skyrizi has also been approved to treat Crohn's Disease, an added bonus and another multi-billion dollar market. After 2022 Humira's row is shaded yellow to signify patent expiry. AbbVie Aesthetics / Neurology revenues forecasts to 2030 (my table and assumptions). Partnerships are with universities, medical facilities, research organizations and other pharmaceutical companies. target price for AbbVie stock based on DCF / EBITDA multiple analysis (my table and assumptions). High institutional ownership can be a signal of strong market trust in this company. The company projects the U.S. toxin market (where Botox is the top product) will decline by mid-single digits. I have not managed to match management's ambitious high-single-digit growth figures from 2025 - 2023, despite anticipating 6% growth for nearly all products in that period. Shares of ABBV stock can be purchased through any online brokerage account. Since its 2013 separation from Abbott Laboratories (ABT 1.78%), AbbVie's stock has grown more than 160%. The company's average rating score is 2.44, and is based on 7 buy ratings, 9 hold ratings, and no sell ratings. Pharmaceuticals are often valued based on a philosophy of "jam tomorrow" as opposed to jam today i.e. Disclaimer. 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%. AbbVie is a leading dividend payer. 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. Abbvies haematologic oncology portfolio, neuroscience portfolio and aesthetics portfolio reported net revenues of $1.65bn, $1.49bn and $1.37bn, respectively. I had felt this could be an issue for Skyrizi and Rinvoq, given it is rare for a drug to be as dominant as Humira was, but although the level of competition is fierce, both drugs are more than meeting expectations, and with the entire auto-immune market worth as much as $45 - $50bn, it does seem possible that Skyrizi and Rinvoq could one day generate >$20bn revenues between them, as management hopes. Compare your portfolio performance to leading indices and get personalized stock ideas based on your portfolio. The average price target represents a 6.33% change from the last price of $153.90. To date, the company had invested more than $50 billion into research through more than 250 partnerships. I have no business relationship with any company whose stock is mentioned in this article. About the AbbVie, Inc. stock forecast. 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. AbbVie had a net margin of 20.39% and a trailing twelve-month return on equity of 154.52%. That led to an overall 6% year-on-year gain of 6%, and a 13% sequential gain. According to CompaniesMarketCap, the biopharmas market capitalisation stood at $272.38bn, making it the worlds 30th most valuable company. What intrigues here is the possibility of RGX-314, an anti-VEGF gene therapy that Gonzalez believes "has the potential to be a one-time treatment for wet AMD, diabetic retinopathy and other chronic retinal conditions". Within the oncology division sales of Imbruvica fell 17% year-on-year. How do I arrive at my share price target? It's hard to argue against Skyrizi and Rinvoq's performance to date, however, and with the total addressable market across all immunology indications likely well in excess of $100bn, I feel fairly comfortable that AbbVie can grow this division's revenues even as the world's biggest ever selling drug exits stage left. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.