Group 1: Market Overview - J.P. Morgan estimates a 60% chance of a recession in 2025 due to trade wars and tariffs, putting the current bull market at risk [1] - The recent market downturn was influenced by trade wars and uncertainty, leading to corrections in major indexes despite an initial post-election rise [2] Group 2: AbbVie Company Analysis - AbbVie has transformed from relying heavily on Humira, which accounted for 58% of sales in 2019 and peaked at $21 billion in 2022, to a more diversified portfolio [6][9] - The acquisition of Allergan for $63 billion in 2020 significantly reduced reliance on Humira and expanded AbbVie's product offerings [7][9] - AbbVie generated approximately $15 billion in revenue from Allergan products in 2024, showcasing the success of the acquisition [9] - In 2024, AbbVie acquired ImmunoGen and Cerevel Therapeutics for $10 billion and $9 billion, respectively, with the ImmunoGen deal showing promise through its ovarian cancer drug Elahere [10] - Sales from AbbVie's internally developed drugs Skyrizi and Rinvoq reached $17.7 billion in 2024, marking a 51% increase over 2023 [11] Group 3: Financial Performance - AbbVie's first-quarter 2025 earnings showed an 8% revenue growth to $13.3 billion, driven by Skyrizi, Rinvoq, and neuroscience gains [13] - The company raised its sales guidance for 2025 by $700 million to $60 billion, reflecting a 7% increase over 2024 [13] Group 4: Investment Considerations - AbbVie is viewed as a safe investment with a solid dividend yield of 3.5%, having increased its dividend annually since 2013 [14] - Analysts are predominantly bullish on AbbVie, with 17 buy or strong buy ratings and no sell ratings, indicating confidence in the stock's stability [15]

Core Viewpoint - Investing in dividend stocks requires attention to a company's underlying operations rather than just high yields, with AbbVie and Gilead Sciences being highlighted as strong candidates for income investors [1][2]. Group 1: AbbVie - AbbVie is recognized as a "Dividend King," having raised its payouts for 53 consecutive years, making it a strong consideration for income investors [4]. - The company is well-known for its immunology drugs, particularly Skyrizi and Rinvoq, which have shown unexpectedly rapid sales growth [5][6]. - Following the loss of patent exclusivity for Humira, AbbVie has successfully returned to top-line growth, with a revised 2027 sales guidance for Skyrizi and Rinvoq exceeding $31 billion, up from $27 billion [6]. - AbbVie has a robust pipeline with numerous programs that are expected to lead to further approvals and label expansions, supporting its strong business fundamentals [8]. - The forward yield for AbbVie is over 3.5%, significantly higher than the S&P 500 average of 1.3%, indicating its potential as a long-term dividend stock [8]. Group 2: Gilead Sciences - Gilead Sciences is a leading drugmaker, particularly known for its dominance in the HIV market, with a revenue of $6.7 billion in the first quarter, despite flat overall sales due to lower Veklury sales [9]. - The HIV segment grew by 6% year-over-year, generating $4.6 billion, with Biktarvy being the top prescribed regimen in the U.S. [10]. - Gilead is diversifying its portfolio beyond HIV, with a focus on oncology, where over a third of its 58 pipeline programs are concentrated [12]. - The forward yield for Gilead is 3.2%, and the company has increased its dividends by nearly 84% over the past decade, making it an attractive option for long-term income-seeking investors [13].

Financial Performance - AbbVie reported worldwide net revenues of $13.3 billion for the three months ended March 31, 2025, representing an 8% increase on a reported basis and a 10% increase on a constant currency basis compared to the same period in 2024[116]. - The company's operating earnings for the same period were $3.7 billion, with diluted earnings per share of $0.72 and cash flows from operations amounting to $1.6 billion[116]. - Total net revenues for the three months ended March 31, 2025, increased by 8.4% to $13,343 million compared to $12,310 million in the prior year[139]. - Gross margin for the same period was $9,341 million, representing a 14% increase from $8,216 million, with a gross margin percentage of 70%[139]. - Operating cash flows decreased to $1,635 million from $4,040 million in the prior year, primarily due to timing of working capital[147]. Product Performance - AbbVie's immunology product Skyrizi generated total revenues of $3.425 billion, a 70.5% increase compared to $2.008 billion in the same quarter of 2024[129]. - Rinvoq's total revenues reached $1.718 billion, reflecting a 57.2% increase from $1.093 billion year-over-year[129]. - Humira's total revenues decreased by 50.6% to $1.121 billion, down from $2.270 billion in the prior year, indicating a significant decline as the product faces increased competition[129]. - Net revenues for Skyrizi increased by 72% to $1,200 million, driven by strong market share uptake[131]. - Net revenues for Rinvoq increased by 60% to $1,000 million, also driven by strong market share uptake[131]. - Net revenues for Humira decreased by 50% to $1,500 million due to direct biosimilar competition following loss of exclusivity[132]. - Net revenues for Botox Therapeutic increased by 17% to $1,200 million, driven by market share growth[132]. Research and Development - AbbVie's pipeline includes approximately 90 compounds, with around 50 in mid- and late-stage development, focusing on immunology, neuroscience, oncology, aesthetics, and eye care[120]. - The company initiated a Phase 3 clinical trial for Qulipta in February 2025, targeting menstrual migraine prevention[122]. - AbbVie submitted a Biologics License Application for BoNT/E in April 2025, which, if approved, will be the first neurotoxin of its kind available to patients[123]. - AbbVie anticipates several regulatory submissions and data readouts from key clinical trials in the next 12 months, supporting its strategic objectives[115]. - Research and development expenses rose by 7% to $2,067 million, accounting for 15% of net revenues, down from 16% in the prior year[141]. Shareholder Returns and Financial Flexibility - The company is focused on generating substantial operating cash flows to support innovative research and development while returning cash to shareholders through dividends[115]. - The company declared a quarterly cash dividend of $1.64 per share, payable on May 15, 2025[151]. - AbbVie repurchased 3 million shares for $606 million during the three months ended March 31, 2025[152]. - AbbVie entered into a new $3.0 billion five-year revolving credit facility maturing in January 2030, in addition to an existing $5.0 billion facility maturing in March 2028[155]. - As of March 31, 2025, AbbVie had no outstanding amounts under its credit facilities and was in compliance with all covenants[155]. - Subsequent to March 31, 2025, AbbVie entered into a $4.0 billion 364-day term loan credit agreement, with no amounts borrowed as of the filing date[156]. - In December 2023, AbbVie secured a $9.0 billion bridge credit agreement and a $5.0 billion term loan credit agreement for acquisitions, which were terminated after a $15.0 billion issuance of senior notes[157]. - AbbVie believes it has sufficient financial flexibility to issue debt and attract long-term capital to support growth objectives[158]. - There were no changes in AbbVie's credit ratings during the three months ended March 31, 2025, which may impact future financing arrangements[159]. Risks and Accounting Policies - AbbVie cautions that forward-looking statements are subject to risks including competition, regulatory changes, and macroeconomic factors[161]. - The company has not made significant changes to its critical accounting policies during the three months ended March 31, 2025[160]. - For market risk disclosures, refer to Item 7A in AbbVie's Annual Report for the year ended December 31, 2024[162].

Financial Data and Key Metrics Changes - Total net revenues for 2024 were $56.3 billion, exceeding initial expectations by over $2 billion [4] - Adjusted earnings per share were $10.12, which was $0.49 above the initial guidance midpoint, excluding the impact of IPR&D expense [4] - The company demonstrated a rapid return to sales growth following the loss of exclusivity for HUMIRA, with expectations to exceed previous peak revenue in 2025 [4][5] Business Line Data and Key Metrics Changes - AbbVie's growth platform delivered full-year sales growth of over 18%, allowing the company to absorb the largest loss of exclusivity in the industry and continue investing for long-term growth [5] - Adjusted R&D investment increased by $3 billion, with approximately 20 early-stage deals signed and acquisitions of ImmunoGen and Cerevil completed [5] Market Data and Key Metrics Changes - The company is well-positioned to deliver high single-digit compound revenue growth through the end of the decade [5] Company Strategy and Development Direction - AbbVie is focused on assets that can add depth to its pipeline and drive growth over the next decade, with significant investments in R&D and business development [23] - The company has expanded its immunology portfolio and entered new therapeutic areas such as obesity, which represents a potential new source of long-term growth [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in AbbVie's ability to rapidly return to growth despite challenges related to HUMIRA's loss of exclusivity [21] - The company plans to invest over $10 billion in U.S. manufacturing capacity to support volume growth and expansion into new areas [29] Other Important Information - The board of directors opposed a shareholder proposal for a simple majority vote, stating that even if it passed, it would not eliminate the supermajority voting requirement [18] Q&A Session Summary Question: Will AbbVie continue to raise the dividend in coming years? - AbbVie generates substantial free cash flow, allowing it to support a strong and growing dividend, which was increased by 5.8% in Q1 2025 [21][22] Question: Is AbbVie considering additional M&A deals to support long-term growth? - AbbVie is focused on acquiring assets that can enhance its pipeline, including recent acquisitions in immunology and oncology [23][24] Question: Why did AbbVie decide to combine the CEO and Chair roles again? - The board believes that a combined leadership structure has proven effective and ensures appropriate oversight and independence [25] Question: How will sectoral tariffs on pharmaceuticals impact AbbVie? - It is premature to speculate on the impact of sectoral tariffs, but AbbVie plans to mitigate any potential effects through inventory management and cost efficiency initiatives [27][28] Question: How has the pipeline progressed in the past year? - AbbVie achieved several regulatory approvals and is advancing multiple pipeline programs that could be significant sources of long-term growth [32][33]

Core Viewpoint - A class action securities lawsuit has been filed against Cerevel Therapeutics Holdings, Inc. due to alleged securities fraud affecting investors during a specific time frame [1][2]. Group 1: Lawsuit Details - The lawsuit aims to recover losses for investors who sold or held shares of Cerevel from October 11, 2023, to August 1, 2024, and were affected by the alleged fraud [2]. - The complaint alleges that Cerevel's October 16, 2023, secondary stock offering omitted critical information regarding AbbVie's interest in acquiring Cerevel at a significantly higher price than the offering price of $22.81 per share [3]. - Bain Capital, Cerevel's controlling shareholder, allegedly acquired shares at a depressed price while possessing nonpublic information about AbbVie's acquisition interest, leading to a windfall of over $120 million when AbbVie announced the acquisition at $45 per share on December 6, 2023 [3]. Group 2: Next Steps for Investors - Investors who suffered losses during the relevant period have until June 3, 2025, to request appointment as lead plaintiff, although participation in any recovery does not require this [4]. - Class members may be entitled to compensation without incurring any out-of-pocket costs or fees [4]. Group 3: Legal Representation - Levi & Korsinsky, LLP has a strong track record in securities litigation, having secured hundreds of millions for shareholders over the past 20 years and consistently ranking among the top securities litigation firms in the U.S. [5].

Core Viewpoint - A class action securities lawsuit has been filed against Cerevel Therapeutics Holdings, Inc. due to alleged securities fraud affecting investors during a specific time frame [1][2]. Group 1: Lawsuit Details - The lawsuit aims to recover losses for investors who sold or held shares of Cerevel from October 11, 2023, to August 1, 2024, and were impacted by the alleged fraud [2]. - The complaint alleges that Cerevel's October 16, 2023, secondary stock offering omitted critical information regarding AbbVie's interest in acquiring Cerevel at a significantly higher price than the offering price of $22.81 per share [3]. - Bain Capital, Cerevel's controlling shareholder, is accused of acquiring shares at an artificially low price while possessing nonpublic information about AbbVie's acquisition interest, leading to a substantial profit when AbbVie announced the acquisition at $45 per share [3]. Group 2: Next Steps for Investors - Investors who suffered losses during the relevant period have until June 3, 2025, to request to be appointed as lead plaintiff in the lawsuit [4]. - Participation in the lawsuit does not require any out-of-pocket costs or fees for class members [4]. Group 3: Firm Background - Levi & Korsinsky, LLP has a strong track record in securities litigation, having secured hundreds of millions for shareholders over the past 20 years and consistently ranking among the top securities litigation firms in the U.S. [5].

Core Viewpoint - The Gross Law Firm has initiated a class action lawsuit on behalf of shareholders of Cerevel Therapeutics Holdings, Inc. (NYSE: ABBV) due to alleged misleading statements and omissions related to a secondary stock offering and subsequent merger with AbbVie Inc. [1][2] Group 1: Allegations and Impact - Cerevel's October 16, 2023 secondary stock offering documents allegedly omitted material facts about AbbVie's interest in acquiring Cerevel at a significantly higher price than the offering price of $22.81 per share, which artificially deflated Cerevel's stock price until the merger announcement [2] - Bain Capital, Cerevel's controlling shareholder, reportedly acquired shares at the depressed price while possessing nonpublic information about AbbVie's acquisition interest, resulting in a windfall exceeding $120 million when AbbVie agreed to acquire Cerevel for $45 per share on December 6, 2023 [2] - Cerevel's January 18, 2024 Proxy statement is claimed to have misled investors regarding the nature and timing of AbbVie's interest in the company [2] Group 2: Class Action Details - The class period for the lawsuit includes shareholders who sold or disposed of Cerevel stock from October 11, 2023, to August 1, 2024, and those who held shares as of January 8, 2024, entitled to vote on the merger [1][2] - The deadline for shareholders to register for the class action and seek lead plaintiff status is June 3, 2025, with no cost or obligation to participate [3]

Core Viewpoint - The Gross Law Firm has issued a notice to shareholders of Cerevel Therapeutics Holdings, Inc. regarding a class action lawsuit related to alleged misleading statements and omissions during a secondary stock offering, which may have artificially deflated the stock price prior to a merger announcement with AbbVie Inc. [1][4] Group 1: Class Action Details - The class period for the lawsuit is from October 11, 2023, to August 1, 2024, and includes shareholders who sold or held shares during this timeframe [3]. - Shareholders are encouraged to register for the class action by June 3, 2025, to potentially be appointed as lead plaintiffs [5]. Group 2: Allegations Against Cerevel - The complaint alleges that Cerevel's October 16, 2023, secondary stock offering documents omitted material facts about AbbVie's interest in acquiring Cerevel at a significantly higher price than the offering price of $22.81 per share [4]. - Bain Capital, Cerevel's controlling shareholder, allegedly acquired shares at an artificially depressed price while possessing nonpublic information about AbbVie's acquisition interest, resulting in a windfall of over $120 million when AbbVie agreed to acquire Cerevel for $45 per share on December 6, 2023 [4]. Group 3: Next Steps for Shareholders - Shareholders who register will be enrolled in a portfolio monitoring software to receive updates on the case's status [5]. - There is no cost or obligation for shareholders to participate in the class action [5].

Core Viewpoint - Johnson & Johnson (JNJ) and AbbVie (ABBV) are both major U.S. pharmaceutical companies with strong pipelines and global operations, but they face different challenges and growth prospects as they approach 2025, which is expected to be a catalyst year for both companies [2]. Group 1: Johnson & Johnson (JNJ) - JNJ's diversified business model, operating through over 275 subsidiaries, provides resilience against economic cycles [3]. - The Innovative Medicine unit showed a 4.4% organic sales growth in Q1 2025 despite the loss of exclusivity for Stelara, with growth expected to be driven by key products and new drug launches [4][5]. - JNJ's MedTech business is experiencing challenges, particularly in China, due to the volume-based procurement program and competitive pressures [6]. - The loss of U.S. patent exclusivity for Stelara in 2025 led to a 33.7% decline in its sales in Q1 2025, with generics expected to further impact sales and profits [7]. - JNJ is facing over 62,000 lawsuits related to its talc-based products, which has created a negative sentiment around the stock [8][9]. - JNJ's 2025 sales and EPS estimates indicate a year-over-year increase of 2.7% and 6.2%, respectively, with the EPS estimate slightly rising over the past month [14]. - JNJ's stock has risen 8.1% year-to-date, outperforming the industry average of 2.4% [21]. - JNJ's current price/earnings ratio is 14.44, slightly below the industry average of 15.70, and its dividend yield is 3.2% [23][24]. - JNJ expects operational sales growth to accelerate in the second half of 2025, driven by new product launches [29]. Group 2: AbbVie (ABBV) - AbbVie has successfully managed the loss of exclusivity for Humira, launching new immunology drugs Skyrizi and Rinvoq, which are expected to generate over $31 billion in combined sales by 2027 [10]. - The oncology strategy is gaining traction with contributions from newer products, and AbbVie has several early/mid-stage pipeline candidates with blockbuster potential [11]. - AbbVie has been active in acquisitions, strengthening its pipeline in immunology and entering the obesity market through a licensing deal [12]. - AbbVie faces near-term challenges, including biosimilar erosion of Humira and competitive pressures on its cancer drug Imbruvica [13]. - AbbVie's 2025 sales and EPS estimates imply a year-over-year increase of 6.4% and 21.2%, respectively, with the EPS estimate slightly declining over the past month [17]. - AbbVie's stock has risen 12.4% year-to-date, also outperforming the industry average [21]. - AbbVie's current price/earnings ratio is 15.22, lower than the industry average but higher than its 5-year mean of 12.23, with a dividend yield of around 3.4% [23][24]. - AbbVie expects to achieve mid-single-digit revenue growth in 2025 and a high single-digit CAGR through 2029, with no significant loss of exclusivity events anticipated for the rest of the decade [31].

Core Insights - Johnson & Johnson remains the top revenue-generating pharmaceutical company with projected 2024 revenue of $88.8 billion, a 4% year-over-year increase [1][3] - The CEO compensation landscape has shifted, with Eli Lilly's CEO David Ricks now the highest-paid in the industry, earning $29.2 million in 2024, a 10% increase from 2023 [4][6] - The pharmaceutical industry is facing challenges from biosimilars, particularly affecting sales of established drugs like Humira and Stelara [2][1] Revenue Rankings - Johnson & Johnson leads with $88.8 billion in revenue, followed by AbbVie at $65.3 billion and Merck at $64.2 billion [3] - Other notable companies include Pfizer with $63.6 billion, and AstraZeneca with $54.1 billion, showing varying growth rates [3] CEO Compensation - Eli Lilly's David Ricks has surpassed Johnson & Johnson's Joaquin Duato, whose compensation decreased by approximately 14% to $24.6 million in 2024 [4][6] - Pfizer's CEO Albert Bourla earned $24.6 million, reflecting a 14% increase, while Merck's Robert Davis earned $23.2 million, also up by 14% [5][6] - Notably, Bristol Myers Squibb's CEO saw the highest percentage increase in compensation, rising by 122% [4][6] Market Dynamics - AbbVie's Humira faced a 37.6% decline in sales to $8.9 billion due to biosimilar competition, but its successors Skyrizi and Rinvoq are projected to generate over $17 billion in 2024 [2] - Merck's Keytruda and Gardasil are expected to account for approximately 59% of the company's total sales in 2024, highlighting the importance of these products [2]