NEW YORK, April 18, 2025 (GLOBE NEWSWIRE) -- Levi & Korsinsky, LLP notifies investors in Cerevel Therapeutics Holdings, Inc. ("Cerevel Therapeutics Holdings, Inc." or the "Company") (NYSE:ABBV) of a class action securities lawsuit. CLASS DEFINITION: The lawsuit seeks to recover losses on behalf of Cerevel Therapeutics Holdings, Inc. investors who were adversely affected by alleged securities fraud. This lawsuit is on behalf of all persons or entities that: (a) sold or otherwise disposed of the publicly-trad ...

Group 1: AbbVie Earnings Expectations - AbbVie is expected to report a year-over-year increase in earnings, with an EPS of $2.47, reflecting a change of +6.9%, and revenues of $12.88 billion, up 4.7% from the previous year [3][12] - The earnings report is scheduled for April 25, 2025, and could influence the stock price depending on whether the results meet or exceed expectations [2][4] - The consensus EPS estimate has been revised 0.05% lower in the last 30 days, indicating a slight bearish sentiment among analysts [4][10] Group 2: Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that AbbVie has a negative Earnings ESP of -3.61%, suggesting analysts have become more pessimistic about the company's earnings prospects [10][11] - Despite the negative Earnings ESP, AbbVie holds a Zacks Rank of 3, making it challenging to predict an earnings beat conclusively [11][16] - Historically, AbbVie has beaten consensus EPS estimates in the last four quarters, with a surprise of +1.41% in the most recent quarter [12][13] Group 3: Industry Comparison - Merck, another player in the pharmaceuticals industry, is expected to report an EPS of $2.16, representing a year-over-year change of +4.4%, with revenues projected at $15.48 billion, down 1.9% from the previous year [17] - Merck's consensus EPS estimate has been revised down by 4% over the last 30 days, resulting in an Earnings ESP of -2.04% [18] - Similar to AbbVie, Merck has a Zacks Rank of 3, complicating predictions for an earnings beat [18]

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 an artificially low 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 serving as a lead plaintiff [4]. - Class members may be entitled to compensation without any out-of-pocket costs or fees [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].

Market Overview - In March 2025, U.S. markets experienced a significant downturn due to escalating trade tensions, leading to a drop of over 10% in both the S&P 500 and Nasdaq, officially entering correction territory [1] Investment Strategy - The focus is on building a portfolio centered around Dividend Growth, targeting both high and low-end yield spectrum, with an emphasis on Blue Chip stocks that have a long history of dividend payments [1]

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][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, leading to an artificial deflation of Cerevel's stock price until the merger was announced [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 of over $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] - The deadline for shareholders to register for the class action is June 3, 2025, and there is no cost or obligation to participate [3] - Registered shareholders will receive updates through portfolio monitoring software throughout the lifecycle of the case [3] Group 3: Law Firm's Mission - The Gross Law Firm aims to protect the rights of investors who have suffered due to deceit, fraud, and illegal business practices, emphasizing the importance of responsible business practices and corporate citizenship [4]

Group 1: Company Highlights - AbbVie Inc. has outperformed the Zacks Large Cap Pharmaceuticals industry over the past year with a growth of +10.2% compared to the industry's decline of -12.5%. The company's products, Skyrizi and Rinvoq, are performing well due to new approvals, and robust revenue growth is expected in 2025 following the loss of exclusivity for Humira [4][5] - The TJX Companies, Inc. has outperformed the Zacks Retail – Discount Stores industry over the last six months with a growth of +11.2% compared to +2.2% for the industry. The company benefits from a strong focus on customer experience and consistent increases in customer transactions [5][6] - The Charles Schwab Corp. has underperformed the Zacks Financial – Investment Bank industry over the past six months, with a growth of +5.3% compared to +19.8% for the industry. The company is facing increased expenses due to investments in growth areas and subdued trading revenues [6][7] - Enzo Biochem, Inc. has significantly underperformed the Zacks Medical – Biomedical and Genetics industry over the past year, with a decline of -69.6% compared to -12.6% for the industry. The company faces challenges from market demand and pricing pressures, along with sustained net losses [7][8] - CVD Equipment Corp. has outperformed the Zacks Manufacturing – General Industrial industry over the last six months with a decline of -8.9% compared to -15.2% for the industry. Innovations in products position the company for growth in high-demand markets, despite facing challenges from market overcapacity and fluctuating revenues [8][9] Group 2: Market Trends and Challenges - AbbVie faces near-term headwinds including biosimilar erosion of Humira, competitive pressure on Imbruvica, and slow market growth for Juvederm fillers in the U.S. and China [5] - TJX is experiencing concerns over increased store wage and payroll costs, as well as negative impacts from unfavorable currency translations [6] - Charles Schwab's subdued trading revenues raise concerns due to volatile capital market performance, although opportunistic acquisitions have led to a rise in client assets [7] - Enzo Biochem's long-term recovery is challenged by compliance costs and increased competition, which threaten operational resilience amid macroeconomic issues [8] - CVD Equipment faces challenges from silicon carbide market overcapacity and declining liquidity, which pressure margins in the volatile semiconductor sector [9]

Group 1 - AbbVie Pharmaceuticals (NYSE: ABBV) is primarily involved in immunology, oncology, neuroscience, eye care, and virology, and is the parent company of Allergan, known for Botox [2] - The stock has shown significant support at the 23-month moving average, with a notable low of 164.39 on April 9th [2] - A potential long-term double bottom is indicated by the November 2024 low, suggesting a favorable outlook for the stock [3] Group 2 - A close over 178 would confirm a reversal pattern for AbbVie, although it is currently underperforming compared to the SPY [6] - The company faces challenges from pharmaceutical tariffs and must overcome several resistance hurdles, including the January 6-month calendar range high and the 200-DMA [6] - The current market phase is distribution, which is considered better than bearish, indicating some positive momentum [6]

Core Insights - Merck and AbbVie are leading pharmaceutical companies with strong portfolios in oncology and immunology, respectively [2][4] - Both companies are experiencing consistent sales and earnings growth, supported by robust pipelines with promising late-stage candidates [4] Merck Overview - Oncology accounts for approximately 50% of Merck's total revenues, with the PD-L1 inhibitor Keytruda alone contributing around 50% of its pharmaceutical sales [3] - Merck has over six blockbuster drugs, with Keytruda being the primary revenue driver, particularly in early-stage non-small cell lung cancer [9] - The company has made significant regulatory and clinical progress in 2024, alongside strategic acquisitions [10] - However, Merck faces challenges such as declining sales of Gardasil due to weak performance in China and concerns about its dependence on Keytruda [11][12] AbbVie Overview - AbbVie's largest segment is immunology, which also accounts for around 50% of its total revenues, driven by key drugs like Humira, Skyrizi, and Rinvoq [3] - AbbVie has successfully managed the loss of exclusivity for Humira by launching new immunology medicines that are performing well [5] - The company has a strong pipeline with several early/mid-stage candidates and plans for regulatory submissions and approvals in the next 12 months [6] - AbbVie faces near-term headwinds, including biosimilar erosion of Humira and competitive pressures on its cancer drug Imbruvica [7][8] Financial Comparisons - As of December 31, 2024, AbbVie had $60.3 billion in long-term debt and a debt-to-capital ratio of 0.95, significantly higher than the industry average of 0.41 [8] - Merck exited 2024 with cash and cash equivalents of $13.7 billion and a debt-to-capital ratio of 0.42, slightly above the industry average [12] - The Zacks Consensus Estimate for AbbVie's 2025 sales and EPS implies year-over-year increases of 5.7% and 21.4%, respectively [13] Investment Outlook - AbbVie is positioned for continued strong growth, expecting mid-single-digit revenue growth in 2025 and a high single-digit CAGR through 2029 [17] - In contrast, Merck faces the upcoming loss of exclusivity for Keytruda in 2028, raising concerns about its ability to sustain growth [17] - Despite a steeper valuation, AbbVie is viewed as a more favorable investment due to rising estimates and a solid growth outlook [18]

Company Overview - Merck (MRK) and AbbVie (ABBV) are leading pharmaceutical companies with strong portfolios in oncology and immunology, with Merck also involved in vaccines, diabetes, virology, and animal health, while AbbVie has a presence in aesthetics, neuroscience, and eye care [1][2] - Oncology accounts for around 50% of Merck's total revenues, with Keytruda, a PD-L1 inhibitor, alone accounting for approximately 50% of its pharmaceutical sales [1][2] AbbVie Analysis - AbbVie's largest segment is immunology, contributing around 50% of its total revenues, with key drugs including Humira, Skyrizi, and Rinvoq [2][3] - The company has successfully managed the loss of exclusivity for Humira by launching new immunology medicines, Skyrizi and Rinvoq, which are performing well and expected to support growth [3][4] - AbbVie has a robust pipeline with several early/mid-stage candidates and anticipates multiple regulatory submissions and approvals in the next 12 months [4] - The company has been active in acquisitions to strengthen its pipeline, particularly in immunology, while also exploring early-stage deals in oncology and neuroscience [4] AbbVie Challenges - AbbVie faces near-term challenges, including biosimilar erosion of Humira, competitive pressure on Imbruvica, and slow market growth for Juvederm fillers in the U.S. and China [5] AbbVie Financials - As of December 31, 2024, AbbVie had $60.3 billion in long-term debt and $6.8 billion in short-term obligations, with cash and cash equivalents of approximately $5.6 billion, resulting in a debt-to-capital ratio of 0.95, significantly higher than the industry average of 0.41 [6] Merck Analysis - Merck has over six blockbuster drugs, with Keytruda being the primary revenue driver, particularly in early-stage non-small cell lung cancer [7] - The company has made significant regulatory and clinical progress in 2024, particularly in oncology and vaccines, and has executed strategic acquisitions [8] Merck Challenges - Merck's sales of Gardasil declined in 2024 due to weak performance in China, and the company is experiencing weakness in its diabetes franchise and generic erosion of some drugs [9] - Concerns are rising about Merck's ability to grow its non-oncology business ahead of Keytruda's loss of exclusivity in 2028 [10] Merck Financials - As of the end of 2024, Merck had cash and cash equivalents of $13.7 billion against long-term debt of $34.5 billion, resulting in a debt-to-capital ratio of 0.42, slightly above the industry average [10] Sales and Earnings Estimates - The Zacks Consensus Estimate for AbbVie's 2025 sales and EPS implies year-over-year increases of 5.7% and 21.4%, respectively [11] - The Zacks Consensus Estimate for Merck's 2025 sales and EPS implies year-over-year increases of 1.3% and 17.1%, respectively [14] Stock Performance - Year-to-date, AbbVie's stock has declined by 0.6%, while Merck's stock has dropped by 19.7%, compared to the industry's decrease of 6.0% [17] Valuation Comparison - Both companies are priced lower than the industry average, with AbbVie trading at a price/earnings ratio of 13.71, higher than Merck's 8.60 [19] - AbbVie's dividend yield is 3.75%, lower than Merck's 4.09% [20] Return on Equity - AbbVie's return on equity stands at 296.3%, significantly higher than Merck's 44.4% [23] Investment Outlook - AbbVie is positioned for continued strong growth, having navigated the challenges of Humira's patent cliff effectively, while Merck faces uncertainties related to Keytruda's upcoming loss of exclusivity [25][26] - AbbVie expects robust mid-single-digit revenue growth in 2025, while Merck's future growth is uncertain due to its reliance on Keytruda [26]

Core Insights - The European Commission has granted marketing authorization for the expanded use of AbbVie's Rinvoq and AstraZeneca's cancer drugs, Imfinzi and Enhertu, indicating positive regulatory developments for these companies [2][4][6][8] - Novartis plans to invest $23 billion over the next five years to enhance its manufacturing and R&D capabilities in the United States, reflecting a strategic shift towards domestic production amid tariff threats [10][11][12] Company Developments - AbbVie's Rinvoq has received approval for treating giant cell arteritis, marking its eighth indication, with ongoing studies for additional autoimmune diseases [4][5] - AstraZeneca's Imfinzi has been approved for use in combination with chemotherapy for non-small cell lung cancer, and Enhertu has received approval for treating specific types of metastatic breast cancer [6][8][9] - Novartis aims to produce 100% of its key medicines in the U.S. through its $23 billion investment, which will create approximately 5,000 new jobs [10][11] Market Context - The pharmaceutical sector has faced challenges, with the NYSE ARCA Pharmaceutical Index declining by 9.8% over the past five trading sessions, and all major stocks in the sector showing negative performance [12][13] - AbbVie experienced the most significant decline among major stocks, dropping by 13.6% in the last five trading sessions [12]