AbbVie Down 3% in a Month: Why Holding the Stock Still Makes Sense

Core Viewpoint - AbbVie (ABBV) stock has recently declined by 3.2% following the denial of takeover talks with Revolution Medicines, which was rumored to be valued at around $20 billion [1][9]. Group 1: Financial Performance - AbbVie reported combined sales of Skyrizi and Rinvoq at $18.5 billion in the first nine months of 2025, with expectations to exceed $25 billion in 2025 and $31 billion by 2027 [5][6]. - The oncology segment generated revenues of $5.0 billion in the first nine months of 2025, reflecting a year-over-year increase of 2.7% [8]. - Neuroscience drug sales increased by 20.3% to nearly $7.8 billion in the first nine months of 2025, driven by products like Botox Therapeutic and Vraylar [10]. Group 2: Product Developments - AbbVie has successfully launched new immunology drugs, Skyrizi and Rinvoq, to offset the loss of exclusivity for Humira, which has seen a significant decline in sales [4][14]. - The company has settled patent litigation for Rinvoq, extending its exclusivity until 2037 [7]. - New product approvals and pipeline candidates, including tavapadon and pivekimab sunirine, are expected to drive long-term growth [12]. Group 3: Market Challenges - Humira sales have declined over 50% in the first nine months of 2025 due to biosimilar competition [14]. - The Aesthetics segment has faced a 7.4% decline in global sales, with Juvederm and Botox Cosmetics also experiencing significant drops [15][16]. - AbbVie has lowered its Aesthetics business expectations from $5.1 billion to $4.9 billion due to market softness [17]. Group 4: Strategic Initiatives - AbbVie has engaged in over 30 M&A transactions since early 2024 to enhance its early-stage pipeline, including the acquisition of Gilgamesh Pharmaceuticals [13]. - The company aims for mid-single-digit revenue growth in 2025, supported by strong performances from its new product launches [28]. - AbbVie is well-positioned for continued growth despite challenges, with a robust pipeline and a focus on R&D investments [26][29].