Key Takeaways AbbVie projects revenue growth in 2025 despite Humira sales falling by over 54% in the first half of 2025.Skyrizi and Rinvoq are fueling gains with new launches, head-to-head data and expanding indications.AbbVie is also expanding in oncology and neuroscience, adding new drugs and boosting migraine uptake.AbbVie (ABBV) expects to return to robust revenue growth in 2025, despite the U.S. loss of exclusivity (LOE) for its flagship drug Humira over two years ago. The drug, which went off-patent i ...

Core Insights - AbbVie shares rose over 4% to a record high following the settlement of patent litigation with generic manufacturers for Rinvoq, extending exclusivity until April 2037 [1][8] - Rinvoq sales increased by 48% year over year to nearly $3.75 billion in the first half of 2025, representing 13% of AbbVie's total revenues [2][8] - AbbVie anticipates that new indications for Rinvoq could add approximately $2 billion to its peak-year sales [3][8] Company Performance - The strong sales of Rinvoq and AbbVie's other drug Skyrizi have helped mitigate the impact of Humira's erosion, positioning them as key growth drivers [4] - AbbVie expects combined sales of Rinvoq and Skyrizi to exceed $25 billion in 2025, with over $8 billion expected from Rinvoq alone [4] Competitive Landscape - The immunology market is highly competitive, with Johnson & Johnson focusing on Tremfya after Stelara lost U.S. patent exclusivity [5] - Eli Lilly is expanding its immunology presence with the FDA approval of Omvoh for ulcerative colitis and Crohn's disease [6] Valuation and Estimates - AbbVie shares are trading at a premium, with a price/earnings (P/E) ratio of 16.14 compared to the industry average of 14.75 [10] - EPS estimates for 2025 and 2026 have seen slight increases in the past 30 days [12]

Core Insights - Eli Lilly and Company (LLY) has significantly increased its market value over the past 2-3 years, primarily due to the success of its GLP-1 drugs, Mounjaro for type II diabetes and Zepbound for obesity [1] Drug Approvals and Revenue Contributions - Lilly has received approvals for several new drugs, including Omvoh for ulcerative colitis and Crohn's disease, Jaypirca for mantle cell lymphoma and chronic lymphocytic leukemia, Ebglyss for atopic dermatitis, and Kisunla for early symptomatic Alzheimer's disease, all contributing to revenue growth [2] - In the first half of 2025, Omvoh generated $111.9 million, while Ebglyss, Kisunla, and Jaypirca contributed $147.1 million, $70.1 million, and $215.3 million, respectively [3] Future Growth Potential - These drugs are being evaluated for additional indications and label expansions, with Ebglyss in phase III trials for perennial allergens and chronic rhinosinusitis, and Jaypirca being studied for earlier lines of therapy [4] - Lilly anticipates that Omvoh, Ebglyss, Kisunla, and Jaypirca will continue to drive revenue growth in the second half of 2025 [5] Upcoming Drug Approvals - A new drug, imlunestrant, is under review for treating ER+HER2-metastatic breast cancer in the US and EU [6] Competitive Landscape - Omvoh faces competition from AbbVie's Humira, Skyrizi, and Rinvoq, as well as J&J's Stelara, while Kisunla competes with Eisai/Biogen's Leqembi [7][8] - Jaypirca competes with older BTK inhibitors like Imbruvica and Calquence, and Ebglyss faces competition from Dupixent [9] Stock Performance and Valuation - Lilly's stock has declined by 4.6% this year, contrasting with a 1.3% increase in the industry [10] - The combined revenue from Omvoh, Ebglyss, Kisunla, and Jaypirca exceeded $540 million in H1 2025, with EPS estimates for 2025 and 2026 rising to $22.97 and $30.95, respectively [11] - Lilly's stock is currently trading at a price/earnings ratio of 25.87, higher than the industry average of 14.78, but below its 5-year mean of 34.54 [13] Consensus Estimates - The Zacks Consensus Estimate for 2025 EPS has increased from $22.04 to $22.97 over the past 30 days, while the estimate for 2026 has risen from $30.88 to $30.95 [14]

Core Insights - AbbVie has effectively managed its transition post-Humira, with strong sales from newer immunology drugs, Rinvoq and Skyrizi, mitigating the impact of Humira's erosion [1][8] Sales Performance - Skyrizi sales increased by 62% year-over-year to $4.42 billion, while Rinvoq sales rose by 41% to $2.03 billion, driven by strong volume growth and market share gains, particularly in the inflammatory bowel disease (IBD) segment [2][8] - AbbVie expects combined sales of Skyrizi and Rinvoq to exceed $25 billion in 2025, with Skyrizi's sales guidance raised to $17.1 billion and Rinvoq on track for approximately $8.2 billion [3][8] Market Position and Competition - AbbVie faces competition in the immunology space from Johnson & Johnson, which markets Stelara and Tremfya, and Eli Lilly, which has recently expanded its portfolio with the FDA approval of Omvoh for UC and CD [5][6] Valuation and Estimates - AbbVie shares are trading at a premium, with a price/earnings (P/E) ratio of 14.58, slightly above the industry average of 14.28 and higher than its five-year mean of 12.61 [10] - Bottom-line estimate movements for 2025 and 2026 have shown mixed trends over the past week, with slight revisions in estimates [12]

Core Viewpoint - Eli Lilly and Company's stock has declined 15.7% over the past year due to a first-quarter earnings miss, guidance cut, and positive developments at rival Novo Nordisk, alongside broader economic challenges [1][10]. Group 1: Company Performance - Lilly's cardiometabolic division is its strongest segment, driven by the success of GLP-1 therapies Mounjaro and Zepbound, which together account for approximately 48% of total revenues [3][4]. - Despite slower-than-expected sales in the second half of 2024, Mounjaro and Zepbound saw a resurgence in the first quarter of 2025 due to new international market launches and improved supply [5][6]. - Lilly anticipates continued growth for Mounjaro and Zepbound through expanded international uptake and deeper market penetration in the U.S. [6][7]. Group 2: Product Pipeline and Future Growth - Lilly has secured approvals for several new therapies, including Omvoh, Jaypirca, Ebglyss, and Kisunla, which are expected to contribute to revenue growth in 2025 [10][11]. - The company is also advancing its pipeline in obesity, diabetes, and cancer, with several key mid and late-stage data readouts expected this year [12]. - Lilly is diversifying beyond GLP-1 drugs by expanding into cardiovascular, oncology, and neuroscience areas, including recent M&A deals to enhance its pipeline [13]. Group 3: Competitive Landscape - The obesity market is projected to reach $100 billion by 2030, with Lilly and Novo Nordisk currently dominating the space [14]. - Mounjaro and Zepbound face competition from Novo Nordisk's semaglutide products and emerging candidates from companies like Amgen and Viking Therapeutics [15][17]. - Other pharmaceutical companies are also entering the obesity market, which could challenge Lilly's and Novo Nordisk's market positions [18]. Group 4: Financial Outlook - Lilly expects 2025 revenues to be between $58 billion and $61 billion, indicating a year-over-year growth of approximately 32% [30]. - The company's stock has increased by over 400% in the past five years, primarily due to successful drug launches and a strong pipeline [29]. - Despite a high valuation with a price/earnings ratio of 29.54 compared to the industry average of 15.04, Lilly's stock is trading below its five-year mean [23].

Core Insights - AbbVie has effectively managed the loss of exclusivity for Humira by launching two new immunology drugs, Skyrizi and Rinvoq, with significant sales expected in the upcoming quarterly report [1][3][8] Group 1: Drug Performance and Sales Expectations - Skyrizi and Rinvoq have been launched across major indications previously covered by Humira, including a new indication for atopic dermatitis, showing strong performance particularly in inflammatory bowel disease (IBD) [2] - AbbVie anticipates combined sales of $6 billion for Skyrizi and Rinvoq in the second quarter, with individual estimates of $4 billion for Skyrizi and $2 billion for Rinvoq [3][8] Group 2: Expansion in Other Therapeutic Areas - AbbVie is also expanding its oncology and neuroscience portfolios, adding new therapies such as Epkinly, Elahere, and Emrelis, bringing its total oncology therapies to five [4] - The neuroscience segment has seen growth driven by increased uptake of migraine treatments, Ubrelvy and Qulipta [4] Group 3: Competitive Landscape - The immunology market is highly competitive, with key players like Johnson & Johnson and Eli Lilly also expanding their portfolios. Johnson & Johnson is focusing on Tremfya after Stelara lost patent exclusivity [5] - Eli Lilly has recently received FDA approval for Omvoh, marking its entry into the IBD market, which enhances its immunology offerings [6] Group 4: Valuation and Market Performance - AbbVie shares have outperformed the industry year to date, trading at a price/earnings (P/E) ratio of 14.21, slightly below the industry average of 15.01 [7][10] - The bottom-line estimate for AbbVie in 2025 remains at $12.28, with a slight increase in the 2026 estimate from $14.05 to $14.06 [11]

Core Insights - Eli Lilly and Company (LLY) has reached a significant support level, making it an attractive option for investors from a technical standpoint, with the stock breaking through its 50-day simple moving average (SMA), indicating a potential short-term bullish trend [1][9] - The company's cardiometabolic business, particularly the success of its diabetes drug Mounjaro and weight loss medicine Zepbound, has become a key driver of revenue [3][4] - Despite some challenges, Lilly expects substantial revenue growth in 2025, driven by Mounjaro, Zepbound, and other new drug approvals [31][32] Company Performance - LLY's stock has traded below its 50-day average since early May due to an earnings miss and guidance cut, but it has recently shown signs of recovery [2][9] - Mounjaro and Zepbound generated combined sales of $6.15 billion in Q1 2025, accounting for approximately 48% of the company's total revenues [4][9] - The company expects 2025 revenues to be between $58 billion and $61 billion, reflecting a 32% year-over-year growth [31][32] Product Pipeline and Growth Drivers - Lilly has launched Mounjaro in new international markets, including China, India, and Mexico, which is expected to drive future sales growth [6][11] - The FDA approved Zepbound for a second indication, which could further enhance sales [7] - Lilly's pipeline includes several promising candidates in obesity, diabetes, and cancer, with key mid and late-stage data readouts expected this year [11][12] Competitive Landscape - The obesity market is projected to expand to $100 billion by 2030, leading to increased competition, particularly from Novo Nordisk and other companies developing GLP-1-based therapies [14][15] - Mounjaro and Zepbound face competition from Novo Nordisk's semaglutide medicines and other emerging candidates from companies like Amgen and Viking Therapeutics [15][16] Financial Metrics and Valuation - Lilly's stock has risen 5.6% this year, outperforming the industry and S&P 500 [22][24] - The stock currently trades at a price/earnings ratio of 31.34, higher than the industry average of 15.51, but below its 5-year mean of 34.54 [26][29] - Estimates for Lilly's 2025 earnings have declined recently, but the company still shows solid growth prospects [29][32]

Core Insights - AbbVie anticipates a return to strong revenue growth in 2025, following the loss of U.S. exclusivity for Humira, which saw a nearly 50% year-over-year sales decline to $1.12 billion in Q1 2025 [1][7] - The ex-Humira platform experienced over 21% year-over-year growth in Q1 2025, driven by the performance of newer immunology drugs, Skyrizi and Rinvoq [2][7] - AbbVie raised its sales guidance by approximately $900 million, now targeting $24.7 billion in combined sales from Skyrizi and Rinvoq for 2025 [3][7] Ex-Humira Growth - Skyrizi and Rinvoq are leading the growth in AbbVie's ex-Humira revenue, particularly in the inflammatory bowel disease (IBD) market, which includes ulcerative colitis (UC) and Crohn's disease (CD) [2][3] - Strong market growth and the potential for new indications for Rinvoq are expected to further drive sales [3] Competitive Landscape - The immunology market is highly competitive, with Johnson & Johnson's Stelara and Tremfya as key competitors, especially after Stelara lost U.S. exclusivity [4] - Eli Lilly is also expanding its immunology portfolio with the recent FDA approval of Omvoh for UC and CD indications [5] Valuation and Performance - AbbVie shares have outperformed the industry year-to-date, trading at a price/earnings (P/E) ratio of 14.48, slightly below the industry average of 15.12 [6][9] - The Zacks Consensus Estimate for 2025 earnings has slightly decreased from $12.30 to $12.28 per share, while the estimate for 2026 has increased from $13.97 to $14.05 [10]

Financial Data and Key Metrics Changes - In 2024, the company's full year revenue increased by 32%, reaching $45 billion, with fourth quarter revenue growing by 45% [19] - The company invested nearly $11 billion in R&D, representing about 24% of its revenue, with an 18% year-over-year increase [19] - A new $15 billion share repurchase program was announced, marking the seventh consecutive year of a 15% increase in quarterly dividends [19] Business Line Data and Key Metrics Changes - The performance of Monjaro, Zepbound, and Verzenio significantly contributed to revenue growth [16] - The company launched five new medicines since 2022, including Evolus, Jaypirca, Kisunla, Monjaro, Zepbound, and Omvoh, enhancing patient reach [18] Market Data and Key Metrics Changes - The company expanded its manufacturing capacity to meet increasing demand and opened new facilities, including the Lilly Seaport Innovation Center in Boston and a Lilly Gateway Lab in the UK [20][21] - A major investment in the United States was announced, bringing total manufacturing commitments since 2020 to over $50 billion [21] Company Strategy and Development Direction - The company remains focused on solving serious healthcare problems and aims to deliver life-changing medicines to millions [16] - The long-term balanced growth strategy includes advancements in obesity, diabetes, oncology, neuroscience, and immunology [16] - The company is complementing its pipeline through acquisitions and collaborations, such as acquiring Morphic Therapeutics and partnering with OpenAI [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for significant growth from late-stage readouts in 2025 [17] - The company is committed to enhancing supply chain resilience and creating high-paying jobs through its investments [21] - Management emphasized the importance of their workforce and collaborations in achieving their goals [22] Other Important Information - The proposals to amend the articles of incorporation regarding the board structure and voting provisions did not receive the required votes [15] Q&A Session Summary Question: Does the compensation committee use the compensation actually paid total in setting the CEO target total compensation award for the coming year? - Management clarified that the compensation actually paid is not used to set the target compensation, as it reflects a mark-to-market value rather than actual compensation [26][28] Question: How much training is provided to employees to prevent clicking on links resulting in malware or breaks in cybersecurity? - Management confirmed that a comprehensive cybersecurity program is in place, including training to prevent incidents related to malware [29]

Core Viewpoint - Eli Lilly and Company reported mixed first-quarter 2025 results, missing earnings estimates but exceeding revenue expectations, driven by strong sales of its diabetes and weight loss medications [1][2][13]. Financial Performance - Adjusted EPS for Q1 2025 was $3.34, missing the Zacks Consensus Estimate of $3.52, but representing a 29% year-over-year increase [1]. - Total revenues reached $12.73 billion, a 45% increase year-over-year, surpassing the Zacks Consensus Estimate of $12.62 billion [2]. Key Drug Sales - Mounjaro sales were $3.84 billion, up 113% year-over-year, exceeding the Zacks Consensus Estimate of $3.75 billion [3]. - Zepbound generated $2.31 billion in sales, compared to $1.91 billion in the previous quarter, beating the Zacks Consensus Estimate of $2.27 billion [4]. - Trulicity sales fell 25% year-over-year to $1.1 billion, aligning with the Zacks Consensus Estimate [6]. - Jardiance sales increased 48% to $1.01 billion, significantly surpassing the Zacks Consensus Estimate of $675 million [7]. - Taltz generated $761.9 million, up 30% year-over-year, beating the Zacks Consensus Estimate of $663 million [7]. - Verzenio sales were $1.16 billion, a 10% increase year-over-year, but missed the Zacks Consensus Estimate of $1.25 billion [8]. - Emgality revenues dropped 45% to $124.6 million, while Olumiant sales rose 5% to $228.7 million [9]. Guidance and Market Position - The company maintained its 2025 revenue guidance of $58.0 billion to $61.0 billion, indicating a 32% year-over-year growth, but lowered EPS guidance to $20.78 to $22.28 [11][12]. - Competition from Novo Nordisk's semaglutide products is significant, with expectations of strong revenue growth for Novo's offerings [5][16]. - Lilly is investing in obesity treatments and has new molecules in clinical development, including a promising oral GLP-1 agonist [16][18]. Market Reaction - Despite strong sales, Lilly's shares fell nearly 5% in pre-market trading due to the EPS miss and lowered earnings guidance [14]. - CVS Caremark's decision to exclude Zepbound from its preferred drug list may impact sales [14]. - Lilly's stock has increased 16.7% year-to-date, outperforming the industry average of 3.5% [14].