On Thursday, BMO Capital Markets sustained its positive outlook on AbbVie Inc . (NYSE:ABBV) shares, maintaining an Outperform rating and a $208.00 price target. The firm's analyst, Evan David Seigerman, emphasized the potential for AbbVie's immunology and inflammation (I&I) portfolio to experience further growth in 2025 as the market shifts focus from Humira to newer drugs.
Seigerman anticipates that the decline in Humira sales in 2025 will be less steep compared to 2024, while the revenue for Skyrizi and Rinvoq is expected to continue its upward trajectory beyond the loss of exclusivity (LOE) concerns.
According to the analyst, forthcoming clinical trials and regulatory decisions for Rinvoq, targeting conditions such as giant cell arteritis (GCA), alopecia areata, lupus, and hidradenitis suppurativa, are likely to contribute to significant revenue growth for the drug.
The company maintains strong financial health with an overall score of "GOOD" according to InvestingPro metrics, supported by a solid dividend yield of 3.83%.
The impending entry of a biosimilar competitor to Stelara, a medication used to treat certain autoimmune conditions, could also provide a boost to AbbVie's business. Seigerman suggests that 2025 will further solidify the narrative of pipeline growth for AbbVie, as the company continues to expand its portfolio and build on its market presence in the I&I therapeutic area.
AbbVie's stock performance and investor sentiment in the coming year will be influenced by the company's ability to navigate the competitive landscape, particularly as it moves beyond its reliance on Humira, which has been a major revenue driver. The company's strategic focus on expanding its I&I portfolio and bringing new treatments to market is poised to play a critical role in sustaining its growth trajectory.
In other recent news, AbbVie has experienced significant developments in its operations and collaborations. The company has expanded its oncology collaboration with AbCellera, aiming to discover T-cell engagers for cancer treatments. AbbVie will retain the rights to develop and commercialize any resulting therapeutic antibodies, with AbCellera receiving upfront and research payments, milestone payments, and tiered royalties on net sales of products from this collaboration.
AbbVie and REGENXBIO have also advanced their collaborative efforts to develop a gene therapy, ABBV-RGX-314, for the treatment of two major eye diseases, with a Phase 3 clinical program planned for diabetic retinopathy and pivotal trial results for wet age-related macular degeneration anticipated in 2026.
In terms of financials, AbbVie has adjusted its fourth-quarter earnings guidance for 2024 due to significant research and development costs, with an expected impact of $0.88 per share. This adjustment brings the company's full-year 2024 adjusted diluted earnings per share to a projected range of $10.02 to $10.06.
Additionally, AbbVie has decided to record a non-cash after-tax impairment charge of approximately $3.5 billion related to the emraclidine intangible asset due to unsuccessful trials of emraclidine, a drug under development for schizophrenia and Alzheimer's disease.
Lastly, AbbVie has recently acquired Nimble Therapeutics for $200 million and Aliada Therapeutics, enhancing its pipeline in immunology and inflammation, neuropsychiatry, oncology, and aesthetics. These are the latest developments in AbbVie's ongoing efforts to innovate and grow.
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