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AbbVie (ABBV) Earnings Live: Why The Stock Is Up Big Today
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Deep Dive into ABBV's Earnings Call
Looking through AbbVie’s earnings call, these growth prospects stood out:
1. Skyrizi & Rinvoq Set to Dominate Immunology Market
- 2025 revenue projection: Nearly $24 billion, up $6 billion year-over-year.
- 2027 forecast: Now expected to exceed $31 billion, $4 billion higher than last year’s projection.
- Key growth drivers: Expanding indications, market share gains, and best-in-class efficacy.
We now expect Skyrizi and Rinvoq to exceed more than $31 billion of combined sales in 2027, which is $4 billion above the guidance we provided last year.
-CEO Rob Michael
- Biggest growth area: Inflammatory Bowel Disease (IBD)
- Skyrizi and Rinvoq together already hold ~50% share of the Crohn’s market.
- Strong early adoption in ulcerative colitis, with share rapidly increasing.
“Both Skyrizi and Rinvoq together are already capturing roughly one-third of the UC in-play market, which supports robust momentum going forward for both AbbVie brands.”
-Jeff Stewart, CCO
2. Neuroscience Business Poised for Rapid Expansion
- 2025 revenue target: $10 billion, reflecting a $1 billion increase from 2024.
- Major contributors:
- VYALEV (Parkinson’s infusion therapy) – seeing high demand.
- BOTOX Therapeutic – strong double-digit growth.
- Ubrelvy & Qulipta (migraine treatments) – accelerating adoption.
- New Parkinson’s drug, Tavapadon, could be a major growth driver.
“We are very pleased with the emerging profile for Tavapadon, which shows strong efficacy as both a monotherapy and add-on treatment for Parkinson’s.”
-Jeff Stewart, CCO
3. Oncology Pipeline Gaining Momentum
- 2025 oncology revenue projection: $6.3 billion
- Key drugs driving growth:
- VENCLEXTA (CLL & AML) – Expected $2.6 billion in sales.
- ELA HERE (ovarian cancer therapy) – Strong adoption, expected $750 million in 2025.
- Teliso-V (lung cancer treatment) – Potential first-in-class approval in 2025.
“I am very encouraged by our long-term growth prospects, particularly in hematologic and solid tumor cancers, where our portfolio is rapidly expanding.”
-CEO Rob Michael
4. Aesthetics Market Expected to Recover & Expand
- 2025 projection: $5.3 billion in sales, reflecting gradual recovery in the U.S. & China.
- Long-term outlook: High single-digit CAGR through 2029.
- Botox & Juvederm remain market leaders, but loyalty program revamp is key to regaining share.
5. Strong Free Cash Flow & M&A Strategy to Fuel Growth
- 2025 free cash flow target: Approaching $17 billion.
- M&A focus: Strengthening immunology, neuroscience, and oncology pipelines.
- 20+ early-stage deals signed in 2024, expanding next-gen therapies.
Shares of AbbVie (NYSE:ABBV) are surging 7% this morning after the pharmaceutical giant reported solid fourth quarter earnings as two key immunology drugs continue to enjoy significant support.
Operational sales jumped 6.1% for the period to $15.1 billion as revenue for plaque psoriasis treatment Skyrizi rocketed 59% higher to $3.78 billion and Rinvoq, a rheumatoid arthritis therapy, saw sales hit $1.8 billion, up 47% from last year.
Management also offered up guidance for the full year of 2025 that was ahead of analyst expectations.
24/7 Wall St. Insights:
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Pharmaceutical stock AbbVie (ABBV) reported fourth-quarter results that handily beat analyst expectations on the top and bottom line.
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ABBV stock is up 7% in morning trading on the strength of its two blockbuster immunology drugs Skyrizi and Rinvoq. They are expected to produce combined sales of $31 billion in 2029.
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The market is willing to move on from last quarter’s schizophrenia drug failure in clinical trials that saw ABBV stock fall 15%.
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What happened
AbbVie has been in a rut since last November when, despite reporting healthy financials, it also said its adult schizophrenia treatment emraclidine failed to meet is primary endpoint in Phase 2 trials.
It was a cold bucket of water thrown on the pharma that had purchased biotech Cerevel Therapeutics last year for $8.7 billion specifically for emraclidine. Worse, rival Bristol-Myers Squibb (NYSE:BMY) had previously been approved for its own schizophrenia treatment. More than 24 million patients globally made the drug a significant growth opportunity.
While that still stings, Skyrizi and Rinvoq are putting a salve on the wound.
AbbVie has been looking for drugs to replace Humira, which was long its biggest revenue contributor, but since losing patent protection has been under pressure from biosimilars. Sales plunged 49% in the quarter to $1.68 billion, well below expectations of $2 billion.
The pharma forecasts Skyrizi will generate as much as $20 billion in sales by 2027 while Rinvoq will rack up revenue of $11 billion.
To put it in perspective, Humira, which was once the world’s best-selling drug at its height, generated peaks sales of $21 billion in 2022.
What it means for the stock
The selloff in ABBV stock was always a bit overdramatic. The pharma has over 90 therapies under development, over half of them being in mid- to late-stage trials. AbbVie spent $12.8 billion on research and development in 2024.
Pharma stocks like ABBV live and die by their drug pipelines and its was always robust. With patent protection on Skyrizi and Rinvoq through 2033, with possible extensions until 2038, AbbVie has a wide moat to protect and finance its research.
CEO Robert Michael said in a statement, “We are entering 2025 with significant momentum and expect net revenues to exceed their previous peak in just the second full year following the U.S. Humira loss of exclusivity.”
Yet ABBV stock is not cheap. At 66 times earnings, it is second to only fellow drugmaker Eli Lilly (NYSE:LLY), which trades at 90 times earnings. AbbVie also goes for 6 times sales and 21 times free cash flow.
Key takeaway
AbbVie offered up earnings guidance for the coming year of $12.12 to $12.32 per share that at the midpoint was well ahead of Wall Street’s forecast of $12.13 per share.
It also gave a long-term outlook beyond just Skyrizi and Rinvoq sales. The pharma expects total revenue to grow at high-single-digit rates through 2029 and it sees its aesthetics business, which includes Botox, is also expected to achieve high-single-digit compound annual growth rates.
This looks like the beginning of a comeback for AbbVie that can continue on through its previous high. With a dividend that yields a healthy 3.5% annually, the pharma stock is a Dividend King worth including in any income investors portfolio.
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