President Trump told attendees at the National Republican Congressional Committee dinner on April 8, "We're going to be announcing very shortly a major tariff on pharmaceuticals." The president believes these tariffs will push drugmakers to manufacture their products in the U.S. instead of in other countries. Importantly, AbbVie's increased full-year earnings guidance included a disclaimer. The company noted that the guidance "is based on the existing trade environment and does not reflect any trade policy ...

Group 1 - AbbVie released financial results for Q1 2025, beating Wall Street expectations [1] - The company is under the leadership of Rob Michael, who has over two decades of investment experience [1] Group 2 - Allka Research focuses on uncovering undervalued assets in various sectors including ETFs, commodities, technology, and pharmaceuticals [1] - The firm aims to deliver substantial returns and strategic insights to clients, simplifying investment strategies for accessibility [1] - Allka Research contributes analyses and perspectives to the Seeking Alpha community, fostering informed investing [1]

Core Viewpoint - The current economic environment presents a favorable opportunity for investors to consider solid dividend stocks, which tend to be more resilient than non-dividend-paying companies amid market volatility and potential recession [1]. Group 1: Dividend Stocks Overview - Four recommended dividend-paying stocks during the current market sell-off are AbbVie, Amgen, Bristol Myers Squibb, and Zoetis [2]. Group 2: AbbVie - AbbVie is recognized for its strong position in immunology, despite facing challenges such as a patent cliff and clinical setbacks [3]. - The company has increased its 2027 revenue guidance for key products Skyrizi and Rinvoq by $4 billion to over $31 billion, indicating strong growth potential [4]. - AbbVie has a robust pipeline and a history of increasing dividends for 53 consecutive years, with a forward yield of 3.9%, significantly above the S&P 500 average of 1.3% [5]. Group 3: Amgen - Amgen's shares faced a decline due to underperformance of its weight loss candidate, MariTide, but the company has a strong portfolio with over 10 blockbuster drugs [6]. - Key growth drivers include asthma medicine Tezspire and FDA-approved Tepezza for thyroid eye disease, supporting a strong revenue outlook [7]. - Since initiating dividends in 2011, Amgen has increased payouts by 750%, with a forward yield exceeding 3.5% [8]. Group 4: Bristol Myers Squibb - Bristol Myers is facing significant patent cliffs, particularly for its best-sellers Opdivo and Eliquis, but has managed to secure new approvals to mitigate revenue loss [9]. - Newer medicines like Reblozyl and Opdualag are expected to drive future sales growth [10]. - The company has increased its dividend by nearly 68% over the past decade, offering a yield of 5.1% [11]. Group 5: Zoetis - Zoetis, a leader in animal health, started the year with disappointing guidance but has a strong portfolio with 15 products generating over $100 million in annual sales [12]. - The company is expected to overcome current challenges with its key product Apoquel and has new approvals in the pipeline to drive growth [13]. - Zoetis has increased its dividends by about 500% over the past decade, although its yield is 1.4% [14].

Financial Data and Key Metrics Changes - The company reported adjusted earnings per share of $2.46, which is $0.10 above the guidance midpoint [7][45] - Total net revenues exceeded $13.3 billion, reflecting robust growth of 9.8% on an operational basis, excluding a 1.4% unfavorable impact from foreign exchange [7][45] - The adjusted operating margin ratio was 42.3% of sales, including a 1.9% unfavorable impact from acquired IPR&D expense [46] Business Line Data and Key Metrics Changes - Immunology revenues were over $6.2 billion, with Skyrizi and Rinvoq contributing $5.1 billion in combined sales, reflecting growth of more than 65% [14][20] - Oncology revenues reached $1.6 billion, with Imbruvica global sales at $738 million (down 11.9%) and Venclexta global revenues at $665 million (up 12.3%) [20][21] - Aesthetics delivered global sales of $1.1 billion, down 10.2% on an operational basis, with BOTOX Cosmetic revenues at $556 million (down 10.7%) and Juvederm sales at $231 million (down 20%) [23][24] - Neuroscience revenues were approximately $2.3 billion, up 17% on an operational basis, with VRAYLAR global sales at $765 million (up 10.3%) [26][27] Market Data and Key Metrics Changes - The company anticipates total net revenues of approximately $59.7 billion for the year, an increase of $700 million from previous estimates [47] - Skyrizi global revenues are now expected to be $16.5 billion, an increase of $600 million, while Rinvoq global sales are projected at $8.2 billion, an increase of $300 million [48] - US Humira revenues are expected to decrease to $3.5 billion, reflecting higher erosion from biosimilar competition [49] Company Strategy and Development Direction - The company plans to invest over $10 billion in the US over the next decade to support volume growth and expansion into new areas such as obesity [10][54] - The company is focusing on advancing its internal pipeline and pursuing strategic acquisitions to drive growth, including the acquisition of Nimble Therapeutics [11][12] - The company aims for a high single-digit revenue CAGR through 2029, indicating a clear runway for growth [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong performance across therapeutic areas and raised full-year adjusted EPS guidance by $0.10 [9][45] - The company is preparing for potential impacts from sectoral tariffs but believes any related impact would be in line with peers due to its extensive US manufacturing presence [10][53] - Management highlighted the importance of a balanced approach to drug pricing and innovation, emphasizing the need for policies that support the biopharmaceutical industry [91][92] Other Important Information - The company is making significant progress in its pipeline, with several important data readouts and regulatory submissions expected throughout 2025 [44] - The company is also exploring the potential of its amylin analog for obesity treatment, with positive interim results from ongoing studies [42][43] Q&A Session Questions and Answers Question: Can you elaborate on the indications most attributable to the upside for Skyrizi and Rinvoq? - The company raised Skyrizi guidance by $600 million, with $200 million attributed to psoriasis and $400 million to IBD indications. Rinvoq was raised by $300 million across all approved indications [60][61] Question: How is the company thinking about the tail for Humira in light of erosion? - Management noted faster erosion from biosimilars and expects the Humira tail to step down further, with deeper visibility anticipated over the year [66] Question: Can you elaborate on potential mitigation strategies regarding tariffs? - The company plans to manage inventory, secure alternate sources of API, and look for cost efficiencies as potential mitigation strategies [75][76] Question: What are the expectations for the amylin program regarding dosing and efficacy? - The company is exploring higher doses in ongoing studies and anticipates larger sample sizes in future phases, with a focus on tolerability and weight loss efficacy [83][84] Question: How does the company view its manufacturing footprint in relation to US investments? - The company maintains a robust US manufacturing network and plans to invest over $10 billion to expand its production capabilities, ensuring supply assurance [123][126]

Core Insights - AbbVie reported strong quarterly earnings, with a net revenue of $13.3 billion, reflecting an 8% year-over-year increase, driven by a nearly 17% rise in immunology drug sales [2][3] - The company's stock gained over 3% following the earnings report, outperforming the S&P 500 index, which rose by 0.6% [1] - AbbVie raised its full-year profitability guidance, now expecting adjusted per-share earnings between $12.09 and $12.29, up from a previous range of $11.99 to $12.19 [5] Financial Performance - AbbVie's net revenue for Q1 was $13.3 billion, an 8% increase year-over-year, largely due to immunology drugs contributing nearly half of total revenue at just under $6.3 billion [2] - Non-GAAP adjusted net income decreased to $1.29 billion ($2.46 per share) from $1.37 billion in the previous year, slightly below analyst expectations of $2.39 per share [3] Management Commentary - CEO Robert Michael emphasized the strength of the company's fundamentals and the positive outlook bolstered by pipeline advancements and strategic investments, indicating AbbVie is well-positioned for long-term success [4]

Group 1 - The Growth Stock Forum focuses on identifying attractive risk/reward situations in growth stocks, particularly in the biotech sector [1][2] - The forum features a model portfolio of 15-20 stocks, a top picks list of up to 10 stocks expected to perform well in the current year, and trading ideas for short-term and medium-term moves [2] - Community engagement is encouraged through dialogue and questions within the forum [2]

Group 1 - AbbVie Inc. (NYSE: ABBV) has experienced a share price increase of 1.7% during the trading session, indicating positive investor sentiment [1] - The potential for further price appreciation exists as investor confidence remains high [1] Group 2 - Manika, a macroeconomist with over 20 years of experience, is involved in investment management and focuses on opportunities in the green economy through her investing group, Green Growth Giants [1]

Core Viewpoint - AbbVie Inc. reported strong first-quarter 2025 results, with adjusted EPS and revenues exceeding estimates, driven by robust sales of key immunology drugs and newer products, despite a significant decline in Humira sales [1][2][18]. Financial Performance - Adjusted EPS for Q1 2025 was $2.46, beating the Zacks Consensus Estimate of $2.39 and the company's guidance of $2.34-$2.38, reflecting a 6.5% year-over-year increase [1]. - Revenues reached $13.34 billion, surpassing the Zacks Consensus Estimate of $12.91 billion and the company's forecast of $12.8 billion, with an 8.4% year-over-year increase on a reported basis and 9.8% on an operational basis [2]. Drug Performance - Immunology drugs drove revenue growth, with Rinvoq generating $1.72 billion (up 59.7%) and Skyrizi at $3.43 billion (up 72%), both exceeding estimates and company guidance [4][5]. - Humira sales declined 49.5% to $1.12 billion, with U.S. sales down 58% to $744 million, missing estimates due to loss of exclusivity [6][7]. - Neuroscience portfolio sales increased 17% to $2.28 billion, driven by Botox Therapeutic and migraine drugs, surpassing estimates [8]. - Oncology/hematology sales rose 7.5% to $1.63 billion, supported by Elahere and Venclexta, exceeding estimates [10]. Cost and Guidance - Adjusted SG&A expenses rose 8.2% to $3.28 billion, while adjusted R&D expenses increased 13.3% to $2.05 billion [16]. - AbbVie raised its full-year EPS guidance to $12.09-$12.29, up from $11.99-$12.19, reflecting stronger-than-expected sales from newer drugs [17]. Market Reaction - AbbVie shares rose over 5% in pre-market trading following the positive earnings report and guidance update, with a year-to-date gain of about 2% compared to the industry's 1% decline [19].

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AbbVie Inc. (NYSE:ABBV) Q1 2025 - Earnings Conference Call April 25, 2025 9:00 PM ET Company Participants Liz Shea - Senior VP, IR Rob Michael - CEO Jeff Stewart - EVP, Chief Commercial Officer Roopal Thakkar - EVP, R&D, Chief Scientific Officer Scott Reents - EVP, CFO Carrie Strom - SVP of AbbVie, and President of Global Allergan Aesthetics Conference Call Participants Chris Schott - JPMorgan Terence Flynn - Morgan Stanley Carter Gould - Cantor Courtney Breen - Bernstein Mohit Bansal - Wells Fargo Steve Sc ...