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Bringing RGX314 would be a coup for AbbVie although I am forecasting for only $2bn in peak revenues in 2030 as a hedge against the risk that this candidate does not make it to market on safety grounds. 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. This represents a $5.92 dividend on an annualized basis and a dividend yield of 3.79%. Receive regular, detailed analysis focused on biotech and healthcare stocks. 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. 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. That is a significant difference because at a forward P/E of 10x AbbVie stock looks like a solid buy opportunity, but at a P/E of 20x, when we consider the risk/challenge of Humira's LOE, prospective investors may prefer to maintain a watching brief as opposed to opening a position. View analysts price targets for ABBV or view top-rated stocks among Wall Street analysts. This would represent an increase of 1.78%. The company issued revenue guidance of -. For full year 2022, Abbvie predicted the adjusted diluted EPS guidance range at $14.00 to $14.20 and $13.92 to $14.12. I take the total revenue figure from each year and plug it into an income statement forecast as follows: AbbVie income statement forecast. How often does AbbVie pay dividends? 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. And never invest or trade money you cannot afford to lose. 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 data). approvals of Humira, Skyrizi, Rinvoq (AbbVie JPM Healthcare conference presentation). The company reported its first revenue for Botox competitor Daxxify. Compare Top Brokerages Here. Investors are already flocking there for a chance at 1,000%+ returns. But AbbVie is also keen to explore solid tumors, and I am therefore adding an additional $1.5bn of revenues from that source by 2030. 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. According to CEO Gonzalez: Over the long-term, aesthetics continues to be an extremely attractive underpenetrated market with significant growth potential. Investors needn't panic however - Humira's replacements are expected by AbbVie's CEO to generate even higher revenues per annum. 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. 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. 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. Having dived into the numbers however and looked ahead to 2030 through the eyes and guidance of management, my conclusion is that investors can probably buy AbbVie stock at current price with reasonably high hopes of making a decent ROI - perhaps 15 - 20% in the next 12 - 18 months, whilst also benefiting from a generous dividend. 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. All rights reserved. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. When looking for ABBV stock forecasts, its important to bear in mind that analysts forecasts can be wrong. Aesthetics was propped up by growing sales of Botox - up 12% year-on-year to $678m, but let down by sales of Juvederm, which management put down to lockdown regulations in China, and the "suspension" of operations in Russia. The company has been increasing its dividend for 51 consecutive years, indicating the company has a strong committment to maintain and grow its dividend. 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. Zscaler, Inc Plummets, Is It Time To Buy The Dip? 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. 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. For the next nine years, the forecast is for Revenue to grow by 3.57%. I am not receiving compensation for it (other than from Seeking Alpha). 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. 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. 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. Always do your own research on a stocks price performance and predictions before making an investment. On average, they expect the company's stock price to reach $161.12 in the next twelve months. Based on our forecasts, a long-term increase is expected, the "ABBV" stock price prognosis for 2028-02-23 is 287.522 USD. Earnings for AbbVie are expected to decrease by -0.55% in the coming year, from $11.00 to $10.94 per share. 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. Please. The development of these 2 drugs has been very quick by drug development standards, and to date both have performed exceptionally well. Free Stock Analysis Report: See The True Value of Any Stock, The Best Strategy For Your Small Trading Account. The Large Pharma sector performed remarkably well in 2022, with the "Big 8" delivering an average ~15% gain whilst the S&P 500 index fell in value, and the biotech sector was in turmoil. The company earns $11.84 billion in net income (profit) each year or $6.61 on an earnings per share basis. Is this happening to you frequently? 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. Rinvoq's progress has been a little more circumspect, but almost as impressive. Thus, it is likely that ABBV will continue to find support on the dips in this type of market environment.. The current consensus among 24 polled investment analysts is to Buy stock in Abbvie Inc. Teliso V is an antibody drug conjugate and a c-Met inhibitor. According to CompaniesMarketCap, the biopharmas market capitalisation stood at $272.38bn, making it the worlds 30th most valuable company. All rights reserved. Morningstar: 2019 Morningstar, Inc. All Rights Reserved. If you have an ad-blocker enabled you may be blocked from proceeding. The difference between trading assets and CFDs. Kateryna Onyshchuk/iStock via Getty Images. Assuming there are 2 highly effective drugs for 1 disease, PMedicine seeks to identify which patients respond better to each. AbbVie has been the subject of 9 research reports in the past 90 days, demonstrating strong analyst interest in this stock. My EPS figure increases slightly between 2022 and 2023, whilst AbbVie has suggested it will be down slightly before beginning to accelerate towards the end of the decade, as revenues correspondingly begin to climb sharply once the worst of the Humira LOE is over. 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. 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. 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. Disclaimer. I look forward to seeing if Epcoritamab is approved this year, and although there is not a lot else in the near-term pipeline at this time, I also look forward to seeing how other projects may progress, e.g., opportunities in Parkinson's Disease, Alzheimer's and Cystic Fibrosis. 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. Please disable your ad-blocker and refresh. 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. It . 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. ABBV currently yields 4.1% and has raised its dividend every year since 2013. The following companies are subsidiares of AbbVie: AbbVie (Gibraltar) Holdings Limited, AbbVie (Gibraltar) Holdings Limited Luxembourg S.C.S., AbbVie (Gibraltar) Limited, AbbVie (Pty) Ltd., AbbVie A/S, AbbVie AB, AbbVie AG, AbbVie AS, AbbVie Australasia Holdings Limited, AbbVie B.V., AbbVie Bahamas Ltd., AbbVie Biofarmacevtska druba d.o.o., AbbVie Biopharmaceuticals GmbH, AbbVie Biopharmaceuticals LLC, AbbVie Biopharmaceuticals Ltd., AbbVie Bioresearch Center Inc., AbbVie Biotech Ventures Inc., AbbVie Biotechnology GmbH, AbbVie Biotechnology Ltd, AbbVie Biotherapeutics Inc., AbbVie Biotherapeutics Limited, AbbVie Central Finance B.V., AbbVie Corp, AbbVie Corporation, AbbVie Deutschland GmbH & Co. KG, AbbVie EOOD, AbbVie Endocrine Inc., AbbVie Endocrinology Inc., AbbVie Farmacuticos S.A. de C.V., AbbVie Farmacutica Ltda., AbbVie Finance B.V., AbbVie Finance Corporation, AbbVie Finance LLC, AbbVie GK, AbbVie GmbH, AbbVie Holdings Corporation, AbbVie Holdings Inc., AbbVie Holdings KK, AbbVie Holdings SAS, AbbVie Holdings Unlimited, AbbVie Holdings s.r.o., AbbVie International S. r.l., AbbVie Investments Limited, AbbVie Investments S. r.l., AbbVie Ireland Holdings Limited, AbbVie Ireland NL B.V., AbbVie Ireland Unlimited Company, AbbVie Japan Holdings B.V., AbbVie Kft., AbbVie Komplementr GmbH, AbbVie L.L.C., AbbVie L.da, AbbVie Limited, AbbVie Limited Liability Company, AbbVie Logistics B.V., AbbVie Ltd, AbbVie Ltd., AbbVie Manufacturing Management Limited, AbbVie Nederland Holdings B.V., AbbVie Operations Singapore Pte. Eye Care, Other products Division Projected Revenues to 2030 (my table and assumptions ). 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. American biopharmaceutical company Abbvie (ABBV) has surged nearly 13% year to date (YTD), and 35% year-over-year (YOY), as of 30 June. 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. The obvious advantages of a "one and done" permanent cure make them potentially very lucrative therapies. Identify stocks that meet your criteria using seven unique stock screeners. Read our dividend analysis for ABBV. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. Please disable your ad-blocker and refresh. Having so much debt in a prevailing inflationary environment is also unattractive. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. Aurora Cannabis Revenue Forecast for 2023 - 2025 - 2030. 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. I'm on twitter @edmundingham. In the next year, analysts predict that Revenue will reach C$253.83M - an increase of 3.50%. Richard A. Gonzalez has an approval rating of 88% among the company's employees. Bhd., AbbVie Sp. AbbVie's stock is owned by many different institutional and retail investors. 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. AbbVie Aesthetics / Neurology revenues forecasts to 2030 (my table and assumptions) . Receive regular, detailed analysis focused on biotech and healthcare stocks. The official website for the company is www.abbvie.com. The average Abbvie stock price prediction forecasts a potential upside of 7.07% from the current ABBV share price of $155.27. Forecast . 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. With the Hughes Optioneering Strategy, youll soon learn that the safest option for new accounts is options themselves! This could present more profit potential for drugmakers as well as investors. 2022 Cable News Network. 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. The company employs 50,000 workers across the globe. We expect proof-of-concept data from roughly a dozen additional early stage oncology opportunities over the next couple of years. 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. 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. In the next year, analysts expect Free Cash Flow to reach $26.97B - an increase of 58.68%. 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. Retail sales were up but so was inflation which meant more volatility for stocks. Payout ratios above 75% are not desirable because they may not be sustainable. 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 median. Based on earnings estimates, AbbVie will have a dividend payout ratio of 54.11% next year. The average analyst rating for AbbVie stock from 34 stock analysts is "Buy". 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. Forecast target price for 03-06-2023: $ 152.58. In-depth profiles and analysis for 20,000 public companies. AbbVie is a leader in ESG and sustainability. 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. What other stocks do shareholders of AbbVie own? Find me at my marketplace channel, Haggerston BioHealth - model portfolio + 4 exclusive stock tips every week. AbbVie has been increasing its dividend for 51 years. The Immunology division looks strong, even factoring in the patent cliff faced by $20 billion-selling Humira. I/we have a beneficial long position in the shares of BMY, GILD, ABBV either through stock ownership, options, or other derivatives. Sign up for MarketBeat All Access to gain access to MarketBeat's full suite of research tools: You have already added five stocks to your watchlist. In the past three months, AbbVie insiders have sold more of their company's stock than they have bought. I am not receiving compensation for it (other than from Seeking Alpha). The company's average rating score is 2.44, and is based on 7 buy ratings, 9 hold ratings, and no sell ratings. All content of the Dow Jones branded indices S&P Dow Jones Indices LLC 2019 and/or its affiliates. Finally, AbbVie was able to raise its financial . However, there are some general principles that can be followed in order to improve the accuracy of stock price predictions. All times are ET. 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. Specifically, they have bought $0.00 in company stock and sold $23,102,528.00 in company stock. I do much more than just articles at Haggerston BioHealth: Members get access to model portfolios, regular updates, a chat room, and more. 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. 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. Skyrizi and Rinvoq will together achieve a higher peak sales figure than even Humira could manage, even while Humira is still making a substantial top line contribution, still accounting for as much of 7% of AbbVie's total sales in 2030. 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. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 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. AbbVie's Q2'22 earnings threw up some positives and negatives for investors to contemplate. And we remain confident in our ability to achieve total sales of more than $9 billion by 2029. The dividend payout ratio is 89.56%. The company has a robust pipeline of new products that are in some stage of clinical trials. I'm on twitter @edmundingham. I write about Biotech, Pharma and Healthcare stocks and share investment tips. All Rights Reserved. That is substantially higher than the 12% CAGR achieved between 2018 - 2022, although that period includes the additional revenues from Allergan. The pharma industry witnessed solid growth amid the pandemic. (my tables and forecasting). About the AbbVie, Inc. stock forecast. 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. 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. I am not receiving compensation for it (other than from Seeking Alpha). In this post, I will discuss Q2'22 results, as well as the long-term outlook for AbbVie based on the latest information, goals, risks, and financial modeling analysis, to try to establish a target price for AbbVie stock. Move your mouse over a quarter or year to see how estimates have changed over time. 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. For the next eight years, the forecast is for Free Cash Flow to grow by . AbbVie passed that onto its 2022 guidance. 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 The Abbvie stock forecast for 2025 had the price at $259.018. AbbVie is one of the largest global Pharmaceuticals, with a market cap of >$265bn. Get daily stock ideas from top-performing Wall Street analysts. 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. As of 2022, AbbVie employed more than 50,000 people globally with 21,000 in STEM-related positions. Real-time analyst ratings, insider transactions, earnings data, and more. Build a CFD portfolio with your favourite companies. 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". According to 34 stock analysts, the average 12-month stock price forecast for AbbVie stock is $166.14, which predicts an increase of 7.62%. Different trading strategies will suit different investment goals with short or long-term focus. Join the 500.000+ traders worldwide that chose to trade with Capital.com, Also you can contact us: Date. Both Leqembi and Donanemab are potential $5bn - $10bn selling assets, but both drugs still have safety questions to answer and not certain to be made eligible for reimbursement. (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. AbbVie made the bold decision to take on a heavy debt load and bid for Allergan, with the deal being completed in 2020. AbbVie had a net margin of 20.39% and a trailing twelve-month return on equity of 154.52%. Allergan was a troubled company in many ways, but there is no doubting the strength of its products and pipeline. AbbVie updated its FY 2024 earnings guidance on Friday, February, 10th. The company provided earnings per share (EPS) guidance of $10.70- for the period. A hold rating indicates that analysts believe investors should maintain any existing positions they have in ABBV, but not buy additional shares or sell existing shares. AbbVie declared a quarterly dividend on Thursday, February 16th. 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. Finally I can present a target price for AbbVie stock in 2023 using DCF / EBITDA analysis. Multidrug Resistant Bacteria Treatment Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2030) Published: March 2, 2023 at 2:55 a.m. Find me at my marketplace channel, Haggerston BioHealth - model portfolio + 4 exclusive stock tips every week. As well as the stock price gains AbbVie has always paid a handsome dividend - which has increased by 270% since the Pharma's inception, currently paying $1.48 per quarter, for a current yield of 4% - the highest in the large Pharmaceutical sector. Shares are consolidating with a buy. Skyrizi has shown superiority to Humira in fields such as plaque psoriasis by a statistically significant amount, with a comparable safety profile, whilst Rinvoq has shown superiority in e.g. How do I arrive at my share price target? 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.