Core Insights - AbbVie has developed a strong neuroscience franchise, initially driven by blockbuster drugs like Botox Therapeutic and Vraylar, and has expanded its portfolio with new migraine treatments Qulipta and Ubrelvy, as well as Vyalev for Parkinson's disease [1][2]. Financial Performance - The neuroscience segment contributed over 17% to AbbVie's total sales in the first half of 2025, with revenues growing nearly 21% year over year, primarily due to increased sales of Botox Therapeutic and Vraylar, along with rising uptake of Ubrelvy and Qulipta [2][9]. - The strong performance in the neuroscience segment has helped mitigate the decline in Duodopa sales [2][9]. Product Launches and Acquisitions - AbbVie launched Vyalev in the U.S. earlier this year, and while initial sales have been modest, expectations are for its contribution to total revenues to grow over time [3]. - The company is actively investing in new therapies, including a recent agreement to acquire Gilgamesh Pharmaceuticals' lead pipeline drug for approximately $1.2 billion, which targets major depressive disorder (MDD). This follows a $1.4 billion acquisition of Aliada Therapeutics, which added an investigational antibody for Alzheimer's disease (AD) [4][5]. Competitive Landscape - Major competitors in the neuroscience space include Biogen and Johnson & Johnson. Biogen is diversifying its offerings due to declining revenues in its multiple sclerosis franchise and has partnered with Eisai to market an FDA-approved treatment for Alzheimer's disease [6]. - Johnson & Johnson has a strong neuroscience portfolio, including the antidepressant nasal spray Spravato and the antipsychotic Invega Sustenna, and recently acquired Intra-Cellular Therapies to enhance its offerings [7]. Valuation and Market Performance - AbbVie shares have outperformed the industry year to date, trading at a premium with a price/earnings (P/E) ratio of 15.59, compared to the industry average of 14.84 and above its five-year mean of 12.82 [8][11]. - Earnings per share (EPS) estimates for 2025 and 2026 have seen slight increases in the past 30 days [12].

Key Takeaways AbbVie will pay up to $1.2B to acquire rights to bretisilocin from Gilgamesh.Bretisilocin showed rapid and durable antidepressant effects in phase II studyAbbVie continues neuroscience deal spree to strengthen its early-stage pipeline.AbbVie (ABBV) has announced a deal with private neuroscience biotech, Gilgamesh Pharmaceuticals, to acquire the latter’s lead pipeline candidate, bretisilocin (GM-2505), a novel therapy being developed for treating major depressive disorder(MDD).Gilgamesh is curr ...

AbbVie(ABBV 0.13%) reported second quarter 2025 results on July 31, 2025, delivering adjusted EPS of $2.97 (up $0.11 from guidance midpoint) and net revenues of $15.4 billion (up $400 million from expectations). Drug pipeline and deals reshape future growth profile Management raised full-year revenue guidance by $800 million, to $60.5 billion, and adjusted EPS (non- GAAP) guidance by $0.21 to a range of $11.88-$12.08, fueled by robust growth in immunology (SKYRIZI, RINVOQ) and neuroscience portfolios. The f ...

Financial Performance - AbbVie Inc. reported second-quarter 2025 adjusted EPS of $2.97, exceeding the Zacks Consensus Estimate of $2.89 and the company's guidance of $2.84-$2.88, with earnings rising 12.1% year over year [1] - Revenues for the quarter reached $15.42 billion, surpassing the Zacks Consensus Estimate of $15.07 billion, with a year-over-year increase of 6.6% on a reported basis and 6.5% on an operational basis [2] Key Drug Performance - Sales of Rinvoq totaled $2.03 billion, up 41.2%, driven by market share gains and recent label expansion [4] - Skyrizi generated $4.42 billion in sales, reflecting a 61.8% increase, attributed to strong volume growth and market share gains [5] - Humira experienced a significant sales decline of 58.2% to $1.18 billion, with U.S. sales down 66% to $802 million due to loss of exclusivity [6][7] - Neuroscience portfolio sales increased 24% to $2.68 billion, driven by higher sales of Botox Therapeutic, Vraylar, Ubrelvy, and Qulipta [8] Oncology and Other Drug Sales - Oncology franchise sales rose 2.4% to $1.68 billion, supported by newer drugs like Epkinly and Elahere, despite a decline in Imbruvica sales [10][11] - Venclexta generated revenues of $691 million, reflecting 8.3% growth, while Elahere sales rose 23.7% to $159 million, although it missed expectations [13] Cost and Guidance - Adjusted SG&A expenses decreased 2.3% year over year to $3.24 billion, while adjusted R&D expenses increased 10.3% to $2.12 billion [16] - AbbVie raised its full-year 2025 EPS guidance to a range of $11.88-$12.08, up from the previous range of $11.67-$11.87 [17] Market Reaction and Strategic Moves - AbbVie shares rose over 5% in pre-market trading following the upward revision in guidance, with a year-to-date stock gain of about 7% compared to the industry's 4% decline [20] - The company continues to invest in its future pipeline through strategic collaborations, including a licensing deal for an investigational trispecific antibody and interest in acquiring Gilgamesh Pharmaceuticals [22]

Core Insights - AbbVie reported strong financial results for the second quarter of 2025, with significant growth in its diversified growth platform and pipeline advancements, leading to an increased full-year outlook [2][4][10] Financial Performance - The company achieved second-quarter net revenues of $15.423 billion, reflecting a 6.6% increase on a reported basis and a 6.5% increase on an operational basis [4][5] - Diluted EPS on a GAAP basis was $0.52, a decrease of 32.5%, while adjusted diluted EPS was $2.97, an increase of 12.1% [4][21] - The gross margin for the second quarter was 71.8% on a GAAP basis and 84.4% on an adjusted basis [8] Revenue Breakdown by Portfolio - Immunology portfolio revenues were $7.631 billion, up 9.5% on a reported basis, with Skyrizi and Rinvoq showing significant growth of 62.2% and 41.8%, respectively [4][5][16] - Neuroscience portfolio revenues reached $2.683 billion, an increase of 24.2%, driven by Vraylar and Botox Therapeutic [4][5][16] - Oncology portfolio revenues were $1.676 billion, a modest increase of 2.6%, with Imbruvica experiencing a decline of 9.5% [4][5][16] - Aesthetics portfolio revenues decreased to $1.279 billion, down 8.1%, with Botox Cosmetic and Juvederm also showing declines [4][5][16] Pipeline Developments - AbbVie received FDA approval for Rinvoq as the first oral JAK inhibitor for giant cell arteritis, marking its ninth indication in the U.S. [8] - Positive results were reported from the Phase 3 UP-AA clinical program for Rinvoq in severe alopecia areata, achieving key endpoints [8] - The company announced the acquisition of Capstan Therapeutics, enhancing its capabilities in RNA delivery for cell engineering [8] - Emrelis received accelerated FDA approval for advanced non-small cell lung cancer, expanding AbbVie's oncology treatment options [9] Full-Year Guidance - AbbVie raised its adjusted diluted EPS guidance for 2025 from a range of $11.67 - $11.87 to $11.88 - $12.08, accounting for an unfavorable impact of $0.55 per share related to acquired IPR&D and milestones [10][4]

Core Viewpoint - AbbVie is expected to report second-quarter 2025 earnings on July 31, with sales estimated at $15.07 billion and earnings per share (EPS) at $2.89, although earnings estimates have declined recently [1][4][5] Financial Performance - AbbVie has consistently exceeded earnings expectations in the past four quarters, with an average earnings surprise of 2.93% [2][3] - The company anticipates adjusted earnings between $2.84 and $2.88 per share for Q2 2025, with net revenues around $15.0 billion [5] Product Performance - Growth is expected to be driven by newer immunology drugs, Skyrizi and Rinvoq, with sales estimates of $4.12 billion and $1.98 billion respectively [6] - Humira, which lost patent protection in January 2023, is projected to generate $1.41 billion in sales, reflecting ongoing sales erosion [7] - Sales for Imbruvica are expected to decline due to competition, with estimates at $704 million [8] - Venclexta sales are likely to rise, estimated at $668 million, driven by strong demand [9] - Neuroscience product sales are projected at $2.47 billion, supported by strong growth in drugs like Botox and Vraylar [10][11] Market Position and Valuation - AbbVie shares have outperformed the industry this year, trading at a price/earnings ratio of 14.44, slightly below the industry average of 15.34 [13][16] - Despite challenges from Humira biosimilars, AbbVie expects robust revenue growth in 2025, with a projected high single-digit revenue CAGR through 2029 [18] Strategic Outlook - AbbVie is investing in its future pipeline through collaborations, including a recent licensing deal for an investigational antibody targeting oncology and autoimmune diseases [20] - The company’s diverse portfolio, including drugs like Venclexta, Vraylar, and others, is expected to offset losses from declining sales in certain areas [19]

Core Insights - AbbVie holds a leadership position in the neuroscience space, with significant products including Botox Therapeutic and Vraylar, contributing to over 17% of the company's first-quarter revenues, which grew 16% year over year [1][10]. Neuroscience Franchise Performance - The neuroscience franchise is estimated to generate $2.5 billion in sales for Q2 2025, reflecting a 15% year-over-year growth, driven by higher sales of Botox Therapeutic and Vraylar, along with market share gains for Ubrelvy and Qulipta [2][10]. - Newly launched Vyalev is expected to contribute modest sales in the U.S., with the majority of its revenue coming from international markets [3][10]. Competitive Landscape - Major competitors in the neuroscience space include Biogen and Johnson & Johnson [5]. - Biogen generates over half of its revenue from neuroscience therapies and markets FDA-approved treatments for Alzheimer's disease and postpartum depression [6]. - Johnson & Johnson's neuroscience portfolio includes leading products like Spravato and Invega Sustenna, with recent acquisitions enhancing its offerings [8]. Valuation and Market Performance - AbbVie shares have outperformed the industry year to date, trading at a price/earnings (P/E) ratio of 14.06, slightly below the industry average of 14.60 [9][12]. - EPS estimates for 2025 have decreased from $12.32 to $11.98, while estimates for 2026 have increased from $14.06 to $14.08 over the past month [13].

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].

Core Insights - AbbVie reported strong first-quarter results for 2025, exceeding expectations and indicating a solid start to the year, with a focus on pipeline advancements and strategic investments [2][3] Financial Performance - First-quarter diluted EPS was $0.72 on a GAAP basis, a decrease of 6.5%, while adjusted diluted EPS was $2.46, an increase of 6.5% [3][19] - Net revenues for the first quarter reached $13.343 billion, an increase of 8.4% on a reported basis and 9.8% on an operational basis [3][4] - The immunology portfolio generated global net revenues of $6.264 billion, up 16.6% on a reported basis and 18.1% operationally [3][4] - Skyrizi net revenues were $3.425 billion, reflecting a 70.5% increase on a reported basis, while Rinvoq net revenues were $1.718 billion, up 57.2% [4][19] - Humira net revenues decreased by 50.6% to $1.121 billion [4][19] - Neuroscience portfolio revenues were $2.282 billion, an increase of 16.1% [4][19] - Oncology portfolio revenues reached $1.633 billion, up 5.8% [4][19] - Aesthetics portfolio revenues were $1.102 billion, a decrease of 11.7% [4][19] Guidance and Outlook - AbbVie raised its 2025 adjusted diluted EPS guidance from $11.99 - $12.19 to $12.09 - $12.29, accounting for an unfavorable impact of $0.13 per share related to acquired IPR&D and milestones expense [3][9] Recent Developments - The European Commission granted marketing authorization to Rinvoq for treating giant cell arteritis in adults, marking the eighth approved indication for the drug in the EU [7] - AbbVie announced a collaboration with Xilio Therapeutics to develop novel immunotherapies for cancer [7] - A Biologics License Application was submitted to the FDA for trenibotulinumtoxinE for treating moderate to severe glabellar lines, which could be the first neurotoxin of its kind available [7][8]

Core Viewpoint - AbbVie has shown resilience in its financial performance despite facing challenges from the loss of exclusivity of its blockbuster drug Humira, with strategic acquisitions and strong growth in other product lines [1][17]. Group 1: Financial Performance - AbbVie’s stock price increased by 16% since November 2023, outperforming the S&P 500 index which returned 9.41% [1]. - Humira's revenue peaked at $21 billion in 2022 but is projected to decline by approximately 38% in 2024 to $8.993 billion due to the entry of biosimilars [2]. - The total revenue for AbbVie in Q4 was $15.1 billion, reflecting a year-over-year growth of 6.1% [6]. Group 2: Product Performance - AbbVie’s immunology drugs, Skyrizi and Rinvoq, have compensated for Humira's losses, with Skyrizi's revenue expected to reach $11.718 billion in 2024, a 50.9% increase, and Rinvoq's revenue projected at $5.971 billion, a 50.5% increase [4]. - The oncology segment, represented by Imbruvica, is facing competition, leading to a revenue decline of 6.9% to $3.347 billion in 2024, but Venclexta and Elahere are showing strong growth [5]. - AbbVie’s neuroscience efforts are yielding a 16.6% growth, driven by Botox Therapeutic and Vraylar [6]. Group 3: Strategic Acquisitions - AbbVie acquired ImmunoGen for $10 billion, enhancing its oncology portfolio with the ADC drug Elahere, approved for platinum-resistant ovarian cancer [1]. - The company also invested $8.7 billion in Cerevel Therapeutics, focusing on neuroscience products [1]. Group 4: Financial Guidance and Valuation - AbbVie adjusted its 2025 earnings guidance, projecting adjusted diluted EPS between $11.99 and $12.19, with a negative impact from acquired IPR&D expenses [7]. - The company maintains a stable operating cash flow between $18 billion and $22 billion annually, providing liquidity and leverage [8][9]. - A discounted cash flow analysis suggests AbbVie is undervalued by approximately 10% based on historical free cash flow margins [11]. Group 5: Market Outlook - AbbVie forecasts that total revenue from Rinvoq and Skyrizi will exceed $31 billion by 2027, indicating a compound annual growth rate of about 21% [4]. - The company’s strong cash generation capabilities and strategic positioning in immunology and oncology suggest a positive outlook despite challenges [17].