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. 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. In other words, no Humira, no problem! In other words, management believes the LOE of Humira - despite it being the world's best-selling drug - will not hinder growth at the company. Enjoy your holiday weekend and catch up on our most read stories this week. Investors do not seem to be taking the bait, however, as AbbVie's share price has slipped by >7% across the past month, and >5% across the past 5 days. 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. 1 dividend stock for a LIFETIME of income. Please. The review period was extended by three months in order for the FDA to review additional data submitted by AbbVie. 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. Perhaps this is an example of how ruthless management can be when encountering falling sales, and a warning that not all company divisions are guaranteed to thrive. With no LOEs on the horizon, it is relatively plain sailing for the company ex-Humira, and the performance of Skyrizi and Rinvoq - to date at least - suggests management does have this massive patent cliff covered. AbbVie's success - as its shareholders will doubtless be aware - stems from the runaway success of its immunology drug Humira, which is indicated for a range of autoimmune conditions, including Rheumatoid Arthritis, Psoriatic Arthritis, Psoriasis, Crohn's Disease, Ulcerative Colitis, Hidradenitis Suppurativa and Ankylosing spondylitis. The Abbvie stock forecast for 2025 had the price at $259.018. Abbvie has a strong pipeline of projects ahead, and has recently received US FDA approval of its ulcerative colitis drug Rinvoq. Identify stocks that meet your criteria using seven unique stock screeners. Johnson & Johnson Free Cash Flow Forecast for 2023 - 2025 - 2030. Other products such as Mavyret and Creon appear to have many more years of blockbuster sales ahead of them, although it is interesting to note that AbbVie no longer reports revenues from its Women's Health division, and scarcely mentions it. For the next year, analysts predict that Free Cash Flow will reach 6.91B - an increase of 1.94%. 2022 Cable News Network. Pharmaceuticals are often valued based on a philosophy of "jam tomorrow" as opposed to jam today i.e. 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. AbbVie has 5 focus areas for its research and products. Trading CFDs is high risk and is not suitable for everyone. Psoriatic arthritis is also adding significantly to Skyrizi's momentum, where we are now approved in 54 countries. 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? On average, they predict the company's stock price to reach $161.12 in the next year. Revance Therapeutics gapped up 54.34% on January 9, and built upon those gains in February. 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. 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. Among the many avenues of research and innovation are the advancement of precision medicine or pMedicine. AbbVie is a leader in ESG and sustainability. The average ABBVIE INC stock forecast 2023 represents a 1.86% increase from the last price of $153.729995727539. 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. I write about Biotech, Pharma and Healthcare stocks and share investment tips. I believe AbbVie is likely 15 - 20% undervalued at current price. As we can see, AbbVie is likely to generate some impressive cash flow based on its operating margins, which begin at 32%. 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. 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. GSK Free Cash Flow Forecast for 2023 - 2025 - 2030. Morningstar: 2019 Morningstar, Inc. All Rights Reserved. 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. What is AbbVie's stock price forecast for 2023? That reflects uncertainty about what the future holds for AbbVie. 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. Get short term trading ideas from the MarketBeat Idea Engine. 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. To see all exchange delays and terms of use please see Barchart's disclaimer. Rinvoq's progress has been a little more circumspect, but almost as impressive. Join the 500.000+ traders worldwide that chose to trade with Capital.com, Also you can contact us: I take the total revenue figure from each year and plug it into an income statement forecast as follows: AbbVie income statement forecast. In February, a Phase 3 induction study saw positive top-line results. The company didn't offer a . My No. 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. What is the dividend yield for AbbVie? Abbvies haematologic oncology portfolio, neuroscience portfolio and aesthetics portfolio reported net revenues of $1.65bn, $1.49bn and $1.37bn, respectively. Richard A. Gonzalez has an approval rating of 88% among the company's employees. Compare Top Brokerages Here. AbbVie's Dividend and Valuation. 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. Projections are based on making fundamental and technical studies of the ABBV stock price performance. 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. AbbVie Aesthetics / Neurology revenues forecasts to 2030 (my table and assumptions). Assuming there are 2 highly effective drugs for 1 disease, PMedicine seeks to identify which patients respond better to each. 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. 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 acquisition expanded AbbVies neuroscience portfolio, adding first-in-class modulators of the synaptic vesicle protein 2A, including lead molecule SDI-118 currently in Phase 1b studies. Between September 2021 and April 2022, AbbVie stock went on a sensational bull run, gaining 62% and hitting an all-time peak of $174. In my model I have then reduced revenues by 20% between 2024 - 2026, and then by 10% per annum between 2027 - 2030. 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. In the last two years, GSK's Free Cash Flow has grown by 0.37%, rising from 6.76B to 6.78B. Multidrug Resistant Bacteria Treatment Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2030) Published: March 2, 2023 at 2:55 a.m. AbbVie has said it expects to generate high-single-digit CAGR growth from 2025 to the end of the decade after revenues fall in 2023 due to Humira LOE. According to CEO Gonzalez: Over the long-term, aesthetics continues to be an extremely attractive underpenetrated market with significant growth potential. (JPM Healthcare conference presentation), Skyrizi's performance has been particularly eye-catching. AbbVie stock forecast 2022 - 2025 - 2030 with analysis AbbVie stock stood at $162.110000610352 on 2022-03-31. forecast for 2023 is $159.42, forecast for 2024 is $156.65, forecast for 2025 is $139.68, forecast for 2026 is $124.48, . Shareholders of record on Friday, April 14th will be given a dividend of $1.48 per share on Monday, May 15th. AbbVie (NYSE:ABBV) pays an annual dividend of $5.92 per share and currently has a dividend yield of 3.83%. All rights reserved. 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. I suspect Eye Care is a division AbbVie can turn around given time, and I feel that with regards to oncology, where AbbVie has the strongest pipeline assets - lymphoma bispecific Epcoritamab may be approved to treat large B-cell lymphoma, and peak sales estimates range from $1.5 - $3bn, although AbbVie will not earn all of that since the product is co-developed with Genmab. 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. I have no business relationship with any company whose stock is mentioned in this article. 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. In the next year, analysts predict that Revenue will reach C$253.83M - an increase of 3.50%. 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". 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. The analysts 12-month consensus ABBV stock price target was $159.75. 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. 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. The companys full-year adjusted diluted EPS guidance excluded any impact from acquired IPR&D and milestones that may be incurred beyond the first quarter of the year, as both cannot be reliably forecasted. AbbVie's mailing address is 1 NORTH WAUKEGAN ROAD, NORTH CHICAGO IL, 60064. 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. 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. Bhd., AbbVie Sp. Earnings for AbbVie are expected to decrease by -0.55% in the coming year, from $11.00 to $10.94 per share. The difference between trading assets and CFDs. Sales of the drug reached $19.9bn in 2018 and were $19.2bn, $19.8bn and $20.6bn in 2019, 2020, and 2021 respectively. This suggests a possible upside of 3.8% from the stock's current price. AbbVie could be the biggest global Pharma by revenue generation in 2028. Abbvie Inc quote is equal to 152.710 USD at 2023-02-27. You should never invest money you cannot afford to lose. It . Sign in to your free account to enjoy all that MarketBeat has to offer. 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. The average analyst rating for AbbVie stock from 34 stock analysts is "Buy". My calculation is that Humira revenues in 2023 will be 80% of the 2022 figure, or $16.7bn. The company has a robust pipeline of new products that are in some stage of clinical trials. According to analysts' consensus price target of $161.12, AbbVie has a forecasted upside of 3.2% from its current price of $156.06. After creating the income statement I prepare the discounted cash flow/EBITDA multiple analysis. The company has been increasing its dividend for 51 consecutive years, indicating the company has a strong committment to maintain and grow its dividend. The median estimate represents a +5.72% increase from the last price of 156.07. Drug pricing is another issue - there is bipartisan, and international pressure on US Pharmas to reduce drug pricing, particularly outside of the US. Neurology also looks strong although aesthetics, eye care and oncology have something to prove. 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. There are still very few approved therapies, although that could change with Crispr Therapeutics (CRSP) / Vertex (VRTX) Sickle Cell Disease therapy leading the charge in 2023. 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. The dividend payout ratio is 89.56%. The company provided earnings per share (EPS) guidance of $10.70- for the period. Currently, AbbVie sees a significantly higher portion of every dollar end up as cash to do with what they please. Discovery Company. 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. 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 In my modeling table above, I estimate Humira sales will decline by 25% between 2022 and 2023, to ~$16bn, although some of that lost revenue will be gobbled up by Skyrizi/Rinvoq. Only 0.08% of the stock of AbbVie is held by insiders. 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. Upgrade to MarketBeat Daily Premium to add more stocks to your watchlist. 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. Please disable your ad-blocker and refresh. I write about Biotech, Pharma and Healthcare stocks and share investment tips. contact@marketbeat.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. AbbVie has a P/B Ratio of 15.97. The company originated as the bio-pharma segment of Abbott Laboratories and was spun off in late 2012. 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. 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. Please disable your ad-blocker and refresh. 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. The average Abbvie stock price prediction forecasts a potential upside of 7.07% from the current ABBV share price of $155.27. As with debt, if approval and revenue targets aren't met, it can quickly result in a loss of faith in the company. According to the algorithm-based forecaster Wallet Investor in its Abbvie stock forecast for 2022, the price could reach $169.852 by the end of December, $199.491 by 2023 and $229.304 by 2024. 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. 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. 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. 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. Forecast . The lowest target is $136.35 and the highest is $210. CNN Sans & 2016 Cable News Network. Our first quarter results highlight the diversity of our portfolio and include compelling performance from key growth drivers Skyrizi, Rinvoq, Aesthetics and Neuroscience. 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. Allergan was a troubled company in many ways, but there is no doubting the strength of its products and pipeline. First of all, as shown in the table above I forecast product sales out to 2030. I have no business relationship with any company whose stock is mentioned in this article. Is this happening to you frequently? I am not receiving compensation for it (other than from Seeking Alpha). As we can see, as per management's guidance revenues fall between 2022 and 2023, before recovering and growing in each year after. Disclaimer. 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. Aurora Cannabis Revenue Forecast for 2023 - 2025 - 2030. 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. In the last four years, Johnson & Johnson's Free Cash Flow has fallen from $18.53B to $17.00B - a 8.28% decrease. If youre new to trading, then youve probably heard the wrong thing about optionsthat theyre risky, unpredictable, or difficult.