AbbVie Inc. (ABBV, Financial) has taken a significant step forward by submitting a Biologics License Application to the U.S. Food and Drug Administration (FDA). The application seeks approval for trenibotulinumtoxinE, a new treatment aimed at addressing moderate to severe glabellar lines, which are commonly known as frown lines. This marks a critical milestone for the company as it expands its portfolio in the facial aesthetics market.
The treatment, if approved, could provide patients with an additional option to manage the appearance of glabellar lines, potentially enhancing AbbVie's offerings in the aesthetics sector. The FDA's decision will be pivotal in determining the availability of this novel therapy to healthcare providers and patients seeking alternatives in cosmetic treatments.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 24 analysts, the average target price for AbbVie Inc (ABBV, Financial) is $213.68 with a high estimate of $251.00 and a low estimate of $173.00. The average target implies an upside of 20.69% from the current price of $177.05. More detailed estimate data can be found on the AbbVie Inc (ABBV) Forecast page.
Based on the consensus recommendation from 27 brokerage firms, AbbVie Inc's (ABBV, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for AbbVie Inc (ABBV, Financial) in one year is $167.89, suggesting a downside of 5.17% from the current price of $177.05. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the AbbVie Inc (ABBV) Summary page.
ABBV Key Business Developments
Release Date: January 31, 2025
- Full-Year Adjusted Earnings Per Share: $10.12, $0.49 above initial guidance midpoint.
- Total Net Revenues: $56.3 billion, exceeding initial guidance by more than $2 billion.
- Ex-HUMIRA Platform Sales Growth: More than 18% for the full year, 22% in the fourth quarter.
- SKYRIZI and RINVOQ Combined Revenue: Approximately $17.7 billion, an increase of nearly $6 billion year over year.
- Fourth-Quarter Immunology Revenues: Approximately $7.3 billion.
- Fourth-Quarter Oncology Revenues: Approximately $1.7 billion.
- Fourth-Quarter Neuroscience Revenues: $2.5 billion, up 19.9% operationally.
- Fourth-Quarter Aesthetics Sales: Approximately $1.3 billion, operational decrease of 4.4%.
- Fourth-Quarter Adjusted Earnings Per Share: $2.16, $0.08 above guidance midpoint.
- Fourth-Quarter Total Net Revenues: $15.1 billion, 6.1% operational growth.
- Adjusted Gross Margin: 83.8% of sales.
- Adjusted R&D Expense: 15.1% of sales.
- Adjusted SG&A Expense: 23.6% of sales.
- Adjusted Operating Margin Ratio: 34.7% of sales.
- Net Interest Expense: $610 million.
- Adjusted Tax Rate: 20.2%.
- 2025 Full-Year Adjusted Earnings Per Share Guidance: Between $12.12 and $12.32.
- 2025 Total Net Revenues Forecast: Approximately $59 billion, 5.7% operational growth.
- 2025 Free Cash Flow Expectation: Approaching $17 billion.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- AbbVie Inc (ABBV, Financial) delivered full-year adjusted earnings per share of $10.12, exceeding initial guidance by $0.49.
- Total net revenues were $56.3 billion, surpassing initial guidance by more than $2 billion.
- The ex-HUMIRA platform showed strong performance with a 22% revenue growth in the fourth quarter.
- SKYRIZI and RINVOQ are expected to generate nearly $24 billion in revenue in 2025, with a projected increase to over $31 billion by 2027.
- The neuroscience segment is projected to achieve $10 billion in sales in 2025, reflecting growth across psychiatry, migraine, and Parkinson's treatments.
Negative Points
- Global sales of HUMIRA declined by 48.7% due to biosimilar competition, with further access reductions anticipated in 2025.
- The aesthetics segment experienced a 4.4% operational decrease in sales, impacted by challenging market conditions in the US and China.
- The Medicare Part D benefit redesign is expected to have a roughly 4% net unfavorable impact on AbbVie's portfolio in 2025.
- IMBRUVICA revenues declined by 6.2% due to competitive dynamics in chronic lymphocytic leukemia (CLL).
- The aesthetics market faces headwinds from economic conditions, with a cautious outlook for modest sales growth in 2025.
