The dividend payout ratio of AbbVie is 89.56%. Botox accounts for the bulk of the companys Aesthetics portfolio revenue and about 4% of the net as of 2022. Without the additional patents - >130 in total - Humira would have lost its market exclusivity in 2016, but having eventually lost protection in Europe, which has resulted in a sales decline from $6.3bn in 2018, to ~$2.7bn in 2022, Humira will finally face generic competition in the US from the beginning of this year. The acquisition expanded AbbVies neuroscience portfolio, adding first-in-class modulators of the synaptic vesicle protein 2A, including lead molecule SDI-118 currently in Phase 1b studies. In other words, management believes the LOE of Humira - despite it being the world's best-selling drug - will not hinder growth at the company. Always do your own research on a stocks price performance and predictions before making an investment. AbbVie has fought off patent challenges against Humira for years longer than expected, and despite losing exclusivity in Europe in 2020, a series of price hikes and market dominance in the US in indications such as Rheumatoid Arthritis ("RA"), Psoriatic Arthritis ("PsA"), Crohn's Disease ("CD"), and Ulcerative Colitis ("UC") - have enabled the drug's sales revenues to keep growing. I will conclude this analysis by stating that, based on all available information, market headwinds and tailwinds, competitors, and opportunities via its products and pipeline, I still consider AbbVie to be a strong investment opportunity. Over the years, AbbView Inc. has made numerous acquisitions. Disclosure: I/we have a beneficial long position in the shares of BMY, GILD, ABBV either through stock ownership, options, or other derivatives. As of 2023 February 22, Wednesday current price of ABBV stock is 151.340$ and our data indicates that the asset price has been in an uptrend for the past 1 year (or since its inception).. Abbvie stock price as been showing a rising tendency so we believe that similar market segments were very popular in the given time frame. z o.o., AbbVie Productos Farmacuticos Limitada, AbbVie Products LLC, AbbVie Promoo L.da, AbbVie Pte. If signs point to that happening I will likely be revising my target price upwards again, but I am playing it more conservative as nobody truly knows the scale of losses after the Humira LOE. The next two approvals - for Navitoclax in Myelofibrosis and Teliso V in non squamous non-small cell lung cancer ("NSCLC") - are anticipated by management in 2024. I am not receiving compensation for it (other than from Seeking Alpha). AbbVie had a net margin of 20.39% and a trailing twelve-month return on equity of 154.52%. I take the total revenue figure from each year and plug it into an income statement forecast as follows: AbbVie income statement forecast. That figure suggests a forward Price to Earnings ("P/E") ratio of ~10x, which is well below the US Big Pharma sector average of ~23x, although it should be noted that the GAAP/non-adjusted EPS may be only significantly lower than the adjusted figure, based on adjusted EPS of $6.52 across H1'22, and GAAP EPS of $3.03 over the same period. View AbbVie's Short Interest. On average, analysts forecast that ABBV's EPS will be $11.80 for 2023, with the lowest EPS . In general, it is important to pay attention to trends, both in the overall market and in the specific sector that a company is in. Teliso V is an antibody drug conjugate and a c-Met inhibitor. I do much more than just articles at Haggerston BioHealth: Members get access to model portfolios, regular updates, a chat room, and more. Trial results demonstrated an overall response rate of 63% and a median duration of response of 12 months, where 39% of patients had already tried a CAR-T cell therapy. As we can see above one of either Skyrizi or Rinvoq has now been approved for all of the same indications as Humira is, except for Hidradenitis Suppurativa, although Rinvoq is undergoing a Phase study in this indication. Join the 500.000+ traders worldwide that chose to trade with Capital.com, Also you can contact us: The drug is now approved in severe Rheumatoid Arthritis, active Psoriatic Arthritis, moderate to severe Atopic Dermatitis, Ulcerative Colitis, active Ankylosing Spondylitis, with Crohn's Disease the next approval on the list. AbbVie's Q2'22 earnings threw up some positives and negatives for investors to contemplate. How to Decide, Taiwan Semiconductor Manufacturing Expanding in the West, One Way to Earn More From Dividend Stocks, How to Choose a Winning Dividend Investing Strategy, 3 Industries Leading the Stock Market Rebound, Oil Tankers Boost Dividends, See Continued Robust Business In '23. We continue to anticipate a clearer path to strong sales growth in 2025 with high-single-digit compounded annual growth rate to the end of this decade. I wrote this article myself, and it expresses my own opinions. The company's lead asset - all-time best selling immunology drug Humira - finally loses patent protection this year and sales will enter a period of terminal decline. Receive regular, detailed analysis focused on biotech and healthcare stocks. Finally I can present a target price for AbbVie stock in 2023 using DCF / EBITDA analysis. Since then, ABBV stock has decreased by 3.4% and is now trading at $156.06. The company can be reached via phone at (847) 932-7900 or via fax at 302-655-5049. View the latest news, buy/sell ratings, SEC filings and insider transactions for your stocks. We now expect global sales for Skyrizi to reach more than $10 billion in 2025, an increase of $2.5 billion versus our previous guidance, reflecting higher performance across basically all of the indications. The dividend payout ratio is 89.56%. I have not managed to match management's ambitious high-single-digit growth figures from 2025 - 2023, despite anticipating 6% growth for nearly all products in that period. (my tables). As of 30 June, analysts price predictions compiled by MarketBeats and long-term forecasts by Wallet Investor projected that the ABBV stock price could rise. The companys operations span 20 countries, treating more than 60 million people and 40 conditions annually. My No. According to the Abbvie stock technical analysis, as of 30 June, the Relative Strength Index (RSI) was pointing to neutral at 62.18. Insiders that own company stock include Azita Saleki-Gerhardt, Brian L Durkin, Carlos Alban, Carrie C Strom, Carrie C Strom, Elaine K Sorg, Henry O Gosebruch, Jeffrey Ryan Stewart, Laura J Schumacher, Michael Severino, Perry C Siatis, Richard A Gonzalez, Robert A Michael, Roxanne S Austin, Scott T Reents, Timothy J Richmond and Timothy J Richmond. Factset: FactSet Research Systems Inc.2019. The company is scheduled to release its next quarterly earnings announcement on Friday, May 5th 2023. As of 2022, AbbVie employed more than 50,000 people globally with 21,000 in STEM-related positions. The average ABBVIE INC stock forecast 2023 represents a 1.86% increase from the last price of $153.729995727539. Outside of Humira, management does not have to worry about LOEs for any of its other portfolio products before the end of the decade, which is encouraging, however, based on my own projections of how AbbVie will generate its revenues between 2023 and 2030, if management wants to drive a CAGR in the high single digits after 2025, it will need some help from its pipeline - not an area of particular strength for AbbVie. AbbVie income statement forecast (My table and assumptions). The surge in revenues can primarily be attributed to its Allergan. This indicates that AbbVie will be able to sustain or increase its dividend. Abbvies first quarter 2022 financial results for the quarter ended 31 March revealed that diluted earnings per share (EPS) increased to $2.51 on a generally accepted accounting principles (GAAP) basis, up from $1.99 a year earlier. This means that . As per management's guidance, I am modelling for $5.7bn of revenues in 2023, with growth beginning to accelerate substantially from 2025 / 26 onwards. Our momentum combined with ramping contributions from new products and new indications will drive accelerating revenue and EPS growth through the rest of the year., ABBV has done very well to add to its impressive gains from the past couple of years. Management are very optimistic on Vraylar, with Gonzalez describing it as "now the only antipsychotic that is a dopamine and serotonin partial agonist approved for the treatment of the most common forms of depression, Bipolar 1 and MDD" and targeting >$5bn peak sales. For ABBVIE INC stock forecast for 2023, 10 predictions are offered for each month of 2023 with average ABBVIE INC stock forecast of $156.58, a high forecast of $160.07, and a low forecast of $152.24. With AbbVie's revenues accelerating past $80bn in 2030 (by my calculation), and cash flow generated in that year being >$25bn, after applying discount factors for each year I reach a price target of $176 - the average of DCF - $162 per share - and EBITDA - $189 per share - calculations. Different trading strategies will suit different investment goals with short or long-term focus. But AbbVie is also keen to explore solid tumors, and I am therefore adding an additional $1.5bn of revenues from that source by 2030. The company issued revenue guidance of -. Currently, AbbVie sees a significantly higher portion of every dollar end up as cash to do with what they please. Morningstar: 2019 Morningstar, Inc. All Rights Reserved. It is a Top 50 Company regarding diversification and a member of the Dow Jones Sustainability World Index and the S&P ESG Index. Not only do these companies pay handsome dividends, they typically grow revenues every year and generate wide profit margins which leads to share price upside. I have no business relationship with any company whose stock is mentioned in this article. Naturally, if there is a more effective and safe drug than Humira available for the same indication, then physicians are likely to prescribe it over Humira, or a Humira biosimilar. What intrigues here is the possibility of RGX-314, an anti-VEGF gene therapy that Gonzalez believes "has the potential to be a one-time treatment for wet AMD, diabetic retinopathy and other chronic retinal conditions". In February, a Phase 3 induction study saw positive top-line results. Data from two Phase 3 induction studies and one maintenance study supported the approval. Within eye care, Restasis was a major disappointment, and the entire division seems to be struggling, with total revenues falling from ~$920m in Q2'21, to ~$720m in Q2'22. The first is Epcoritamab, a CD3xCD20 bispecific for B-cell malignancies, including DLBCL and follicular lymphoma, which AbbVie expects will be approved this year. Year-to-date, the stock was up slightly more than 12% while benchmark global indices have all fallen sharply amid surging inflation, interest rate hikes and slowdown worries. The material provided on this website is for information purposes only and should not be understood as an investment advice. Having dived into the numbers however and looked ahead to 2030 through the eyes and guidance of management, my conclusion is that investors can probably buy AbbVie stock at current price with reasonably high hopes of making a decent ROI - perhaps 15 - 20% in the next 12 - 18 months, whilst also benefiting from a generous dividend. 326 E 8th St #105, Sioux Falls, SD 57103 This suggests a possible upside of 3.2% from the stock's current price. Real-time analyst ratings, insider transactions, earnings data, and more. Based on earnings estimates, AbbVie will have a dividend payout ratio of 54.11% next year. Allergan plc was an Ireland-based pharmaceutical company focused on health-oriented aesthetic products and is the owner of Botox. Fawad Razaqzada, market analyst for City Index and FOREX.com, commenting to Capital.com, said: As of 30 June, analyst ratings compiled by MarketBeat shared different price targets for Abbvie stock. psoriatic arthritis at a lower dose, again with a comparable safety profile, and has also won approval in a field where Humira has not, namely Atopic Dermatitis. As we can see, as per management's guidance revenues fall between 2022 and 2023, before recovering and growing in each year after. Please log in to your account or sign up in order to add this asset to your watchlist. As we look beyond 2025, we expect combined sales for Skyrizi and Rinvoq to exceed the peak revenues achieved by Humira, which was more than $21 billion. The fact that my own forecasts are less ambitious than management's reflects the fact I have not introduced new products into my forecasts, and it will be interesting to see how management performs on that front as AbbVie has not really had to have a string pipeline while Humira has delivered such dominance in the auto-immune markets.
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