ZACKSยท2025-06-20 14:31Core Viewpoint - Eli Lilly and AbbVie are leading U.S. pharmaceutical companies with strong drug portfolios and market presence, particularly in immunology, oncology, and neuroscience [1][2] Group 1: Company Overview - Eli Lilly has a robust cardiometabolic health business, driven by its GLP-1 drugs, Mounjaro and Zepbound, which account for approximately 50% of its total revenues [3][4] - AbbVie has successfully transitioned from the loss of exclusivity of Humira by launching new immunology drugs, Skyrizi and Rinvoq, which are expected to generate significant sales [13][14] Group 2: Financial Performance - Lilly anticipates 2025 revenues between $58.0 billion and $61.0 billion, reflecting a 32% year-over-year growth [29] - AbbVie expects combined sales of Skyrizi and Rinvoq to reach around $24.7 billion in 2025, with a projected growth to over $31 billion by 2027 [14][30] Group 3: Market Dynamics - Lilly's Mounjaro and Zepbound face competition from Novo Nordisk's products, which may impact their market share [10][12] - AbbVie is experiencing strong performance from its oncology products, with new approvals contributing to its growth strategy [15] Group 4: Valuation and Estimates - Lilly's shares trade at a forward P/E ratio of 30.03, higher than AbbVie's 14.15, indicating a more expensive valuation for Lilly [22] - The Zacks Consensus Estimate for AbbVie's 2025 sales and EPS implies a year-over-year increase of 6.6% and 21.3%, respectively, while Lilly's estimates show a 33.03% increase in sales and 68.9% in EPS [18][20] Group 5: Investment Considerations - AbbVie offers a higher dividend yield of 3.5% compared to Lilly's 0.8%, making it more attractive for income-focused investors [27] - Despite Lilly's strong growth prospects, AbbVie is viewed as a safer investment option due to its lower valuation and rising estimates [31]