AbbVie Adds More Than $24B in 6 Months: How to Play ABBV Stock

Core Insights - AbbVie (ABBV) stock has increased by 8.0% over the past six months, adding over $24 billion to its market capitalization [1][9]. Group 1: Product Performance - AbbVie has successfully managed the loss of exclusivity for its blockbuster drug Humira by launching two new immunology drugs, Skyrizi and Rinvoq, which are performing exceptionally well and are expected to support revenue growth in the coming years [2][4]. - Skyrizi and Rinvoq generated combined sales of $5.1 billion in Q1 2025, reflecting a growth of over 65% [5][9]. - AbbVie anticipates combined sales of Skyrizi and Rinvoq to reach approximately $24.7 billion in 2025 and exceed $31 billion by 2027, driven by strong market growth and new indications [6][21]. Group 2: Pipeline and Acquisitions - AbbVie has a robust pipeline with several early/mid-stage candidates that have blockbuster potential, expecting multiple regulatory submissions and approvals in the next 12 months [7][8]. - The company has been actively acquiring new technologies and companies, signing over 20 early-stage deals since the beginning of 2024, which strengthens its pipeline in immunology, oncology, and neuroscience [9][10]. Group 3: Challenges and Market Conditions - AbbVie faces challenges such as the erosion of Humira sales due to biosimilar competition, with Humira sales declining by nearly 50% in Q1 2025 [11][12]. - The aesthetics segment is also experiencing a decline, with Juvederm fillers sales down by 10.2% in Q1 2025 due to challenging market conditions in the U.S. and China [12][11]. Group 4: Stock Performance and Valuation - AbbVie's stock has outperformed the industry and the S&P 500, gaining 7.1% this year compared to a 0.7% decrease in the industry [13][15]. - The stock is currently trading at a price/earnings ratio of 14.21, slightly below the industry average of 14.87, but higher than its five-year mean of 12.44 [16][19]. Group 5: Future Outlook - AbbVie expects to return to robust revenue growth in 2025, driven by its ex-Humira platform, with a projected mid-single-digit revenue growth and high single-digit CAGR through 2029 [21][22]. - Rising earnings estimates and a solid pipeline position AbbVie favorably for continued investment [22].