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AbbVie Inc. (ABBV) Stock

AbbVie Inc. Stock Details, Movements and Public Alerts

AbbVie (ABBV): Richard Gonzalez's $11 Billion Immunology Bet Replaces Humira's Lost Empire

AbbVie faces a defining moment as CEO Richard A. Gonzalez navigates the pharmaceutical industry's largest patent cliff-the loss of Humira's exclusivity after generating $200 billion in cumulative sales. Yet this isn't a story of decline but transformation. With immunology successors Skyrizi and Rinvoq already generating $11 billion annually, the $8.7 billion Cerevel neuroscience acquisition, and a pipeline of 90+ programs, AbbVie is engineering one of pharma's most impressive growth pivots while maintaining its position as a dividend aristocrat yielding 3.4%.

  • Immunology Transition:Skyrizi/Rinvoq combined $11B revenue offsetting Humira decline
  • Pipeline Depth:90+ programs in development across immunology, oncology, neuroscience
  • Strategic M&A:$8.7B Cerevel acquisition strengthens neuroscience portfolio
  • Dividend Strength:3.4% yield with 52 consecutive years of dividend growth
  • Financial Resilience:$15B+ annual free cash flow despite Humira biosimilar impact

Market Cap

$322.03B

52-Week High

$216.66

-11.60% from high

52-Week Low

$160.79

+19.11% from low

Avg Daily Volume

7,363,718

100-day average

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

78.24

Above market average

Forward P/E

15.02

Earnings expected to grow

PEG Ratio

0.39

Potentially undervalued

Price to Book

226.78

EV/EBITDA

26.09

EPS (TTM)

$2.33

Price to Sales

5.61

Beta

0.49

Less volatile than market

How is ABBV valued relative to its earnings and growth?
AbbVie Inc. trades at a P/E ratio of 78.24, which is above the market average of approximately 20. This premium valuation suggests investors expect above-average growth or the company has competitive advantages justifying the higher multiple. Looking ahead, the forward P/E of 15.02 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 0.39 suggests the stock may be undervalued relative to its growth rate.
What is ABBV's risk profile compared to the market?
With a beta of 0.49, AbbVie Inc. is less volatile than the overall market. This means when the market moves up or down by 10%, this stock typically moves less than 10% in the same direction. Lower beta stocks are often preferred by conservative investors seeking stability. The price-to-book ratio of 226.78 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

7.31%

Operating Margin

30.40%

Return on Equity

88.40%

Return on Assets

8.34%

Revenue Growth (YoY)

8.40%

Earnings Growth (YoY)

-6.30%

How profitable and efficient is ABBV's business model?
AbbVie Inc. achieves a profit margin of 7.31%, meaning it retains $7.31 from every $100 in revenue after all expenses. This relatively low margin suggests the company operates in a competitive environment or high-cost industry where profitability is challenging. The operating margin of 30.40% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 88.40% and ROA at 8.34%, the company generates strong returns on invested capital.
What are ABBV's recent growth trends?
AbbVie Inc.'s revenue grew by 8.40% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings decreased by 6.30% year-over-year, reflecting the bottom-line impact of business performance. These growth metrics should be evaluated against PHARMACEUTICAL PREPARATIONS industry averages for proper context.

Dividend Information

Dividend Per Share

$6.38

Dividend Yield

3.60%

Ex-Dividend Date

7/15/2025

Dividend Date

8/15/2025

What dividend income can investors expect from ABBV?
AbbVie Inc. offers a dividend yield of 3.60%, paying $6.38 per share annually. This above-average yield of 2-4% provides meaningful income while still allowing the company to reinvest for growth. It compares favorably to the S&P 500 average and offers competitive returns versus bonds in the current rate environment. To receive the next dividend, shares must be purchased before the ex-dividend date of 7/15/2025.
How reliable is ABBV's dividend for long-term investors?
The dividend sustainability can be assessed through the payout ratio - AbbVie Inc. pays $6.38 per share in dividends against earnings of $2.33 per share, resulting in a payout ratio of 100.00%. This very high payout exceeding 90% raises sustainability concerns, as nearly all earnings go to dividends. Any earnings decline could force a dividend cut. The next dividend payment is scheduled for 8/15/2025.

Company Size & Market

Shares Outstanding

1.77B

Book Value/Share

$0.80

Asset Type

Common Stock

What is ABBV's market capitalization and position?
AbbVie Inc. has a market capitalization of $322.03B, classifying it as a mega-cap stock (over $200B). These are the largest, most established companies globally, typically offering stability and liquidity but with more modest growth potential. Mega-caps often pay dividends and weather economic downturns better than smaller companies. With 1.77B shares outstanding, the company's ownership is widely distributed. As a major player in the PHARMACEUTICAL PREPARATIONS industry, it competes with other firms in this sector.
How does ABBV's price compare to its book value?
AbbVie Inc.'s book value per share is $0.80, while the current stock price is $191.52, resulting in a price-to-book (P/B) ratio of 238.21. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As a common stock, this represents equity ownership with voting rights.

Analyst Ratings

Analyst Target Price

$208.86

9.05% upside potential

Analyst Recommendations

Strong Buy

4

Buy

12

Hold

12

Sell

0

Strong Sell

0

How reliable are analyst predictions for ABBV?
28 analysts cover ABBV with 57% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $208.86 implies 9.1% upside, but targets are often adjusted to follow price moves rather than predict them.
What is the Wall Street consensus on ABBV?
Current analyst recommendations:4 Strong Buy, 12 Buy, 12 Hold, 00The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Jul 1, 2025, 04:44 AM

Earnings Dates

Upcoming Earnings

Q2

Jul 23, 2025

Est. EPS: $3.22

In 8 days

Recent Earnings History

DateQuarterEstimated EPSActual EPSSurprise
Apr 25, 2025Q1$2.38$2.46+3.4%
Jan 31, 2025Q4$2.12$2.16+1.9%
Oct 30, 2024Q3$2.91$3.00+3.1%
Jul 25, 2024Q2$2.57$2.65+3.1%
Apr 26, 2024Q1$2.23$2.31+3.6%
Feb 2, 2024Q4$2.77$2.79+0.7%
Oct 27, 2023Q3$2.86$2.95+3.1%
Jul 27, 2023Q2$2.81$2.91+3.6%

Technical Indicators

RSI (14-day)

55.41

Neutral

50-Day Moving Average

$187.59

2.09% above MA-50

200-Day Moving Average

$186.21

2.85% above MA-200

MACD Line

1.32

MACD Signal

0.73

MACD Histogram

0.59

Bullish

What does ABBV's RSI value tell investors?
The RSI (Relative Strength Index) for ABBV is currently 55.41, indicating the stock is in neutral territory (40-60 range). Neither buyers nor sellers have clear control, suggesting consolidation or balanced market forces. Combined with the price being above the 50-day moving average, this confirms bullish conditions.
How should traders interpret ABBV's MACD and moving average crossovers?
MACD analysis shows the MACD line at 1.32 above the signal line at 0.73, with histogram at 0.59. This bullish crossover suggests upward momentum is building. The 50-day MA ($187.59) is above the 200-day MA ($186.21), forming a golden cross pattern that typically signals a long-term uptrend. Price is currently above both MAs, confirming strength.

Indicators last updated: Jul 15, 2025, 08:02 PM

Active Alerts

Alert Condition
Reaches new 52-week low
Threshold
N/A
Created
May 17, 2025, 02:09 PM

AbbVie (ABBV) Stock Analysis 2025: Complete Investment Guide

AbbVie faces a defining moment as CEO Richard A. Gonzalez navigates the pharmaceutical industry's largest patent cliff-the loss of Humira's exclusivity after generating $200 billion in cumulative sales. Yet this isn't a story of decline but transformation. With immunology successors Skyrizi and Rinvoq already generating $11 billion annually, the $8.7 billion Cerevel neuroscience acquisition, and a pipeline of 90+ programs, AbbVie is engineering one of pharma's most impressive growth pivots while maintaining its position as a dividend aristocrat yielding 3.4%.

When Richard A. Gonzalez became CEO of AbbVie in 2013, following its spinoff from Abbott Laboratories, he inherited both a blessing and a curse: Humira, the world's best-selling drug. For a decade, this arthritis treatment powered AbbVie's growth, peaking at $21 billion in annual sales. But Gonzalez knew the patent cliff loomed like a pharmaceutical Sword of Damocles. 'We're not going to be a one-drug company forever,' he declared in 2018, launching an aggressive diversification strategy. Today, as Humira faces biosimilar competition, Gonzalez's foresight is paying dividends-literally and figuratively. AbbVie's stock trades near all-time highs while the company maintains its aristocrat status with 52 years of consecutive dividend increases, proving that smart science and strategic planning can overcome even pharma's steepest cliffs.

The numbers tell a remarkable story of pharmaceutical resilience. In 2024, Humira's U.S. sales declined 35% as biosimilars captured market share, yet AbbVie's total revenue grew 5%. The heroes of this transition-Skyrizi and Rinvoq-aren't just replacement products but potentially superior medicines. Skyrizi's 90% skin clearance rates in psoriasis and Rinvoq's best-in-class efficacy across multiple indications are driving rapid adoption. Combined, these next-generation immunology drugs are on track to exceed Humira's peak sales by 2027, with Skyrizi alone projected to reach $17 billion. This isn't lucky timing; it's the result of $50 billion in R&D investment and strategic acquisitions that built a diversified pharmaceutical powerhouse.

The Immunology Franchise: From Monopoly to Portfolio

AbbVie's immunology transformation represents pharmaceutical portfolio management at its finest. Rather than desperately defending Humira's eroding market share, Gonzalez orchestrated a controlled transition to next-generation therapies. Skyrizi (risankizumab) targets IL-23, offering superior efficacy and less frequent dosing than older TNF inhibitors like Humira. In clinical trials, 90% of psoriasis patients achieved clear or almost clear skin, with many maintaining responses for over three years. This isn't incremental improvement-it's paradigm-shifting efficacy that justifies premium pricing even in a competitive market.

Rinvoq (upadacitinib) exemplifies AbbVie's strategic brilliance by targeting multiple indications with a single JAK inhibitor. Approved for rheumatoid arthritis, psoriatic arthritis, ulcerative colitis, Crohn's disease, and atopic dermatitis, Rinvoq addresses a $30 billion market opportunity. The drug's versatility creates commercial efficiency-one sales force, one manufacturing process, multiple revenue streams. Early launch trajectory exceeds analyst expectations, with Rinvoq achieving $3.5 billion in 2024 sales despite being on market for just four years. The combined immunology portfolio, including established drugs like Imbruvica, ensures AbbVie maintains leadership in inflammatory diseases while diversifying risk across multiple mechanisms of action.

Neuroscience: The $8.7 Billion Future

The Cerevel Therapeutics acquisition for $8.7 billion represents Gonzalez's boldest bet on AbbVie's future. Cerevel brings a pipeline of neuroscience assets targeting Parkinson's disease, schizophrenia, and mood disorders-areas with massive unmet medical need and limited competition. The lead asset, emraclidine for schizophrenia, could revolutionize treatment by avoiding the metabolic side effects that plague current antipsychotics. With Phase 2 data showing robust efficacy and clean safety, emraclidine could capture significant share of the $8 billion schizophrenia market.

Beyond individual assets, Cerevel provides AbbVie with a neuroscience platform leveraging cutting-edge understanding of brain circuitry and receptor biology. This isn't AbbVie's first neuroscience venture-the company already markets Vraylar for bipolar disorder and schizophrenia, generating $2.5 billion annually. Adding Cerevel's pipeline creates critical mass in neuroscience, attracting top talent and enabling portfolio synergies. As neurological disorders become increasingly prevalent with aging populations, AbbVie's neuroscience investments position it to address one of healthcare's greatest challenges while diversifying beyond immunology dependence.

Oncology: Building the Third Pillar

While immunology grabs headlines, AbbVie quietly built a formidable oncology franchise generating $6 billion annually. The foundation rests on two blockbusters: Imbruvica for blood cancers and Venclexta for chronic lymphocytic leukemia. These targeted therapies transformed treatment paradigms by offering oral alternatives to chemotherapy with improved outcomes. Imbruvica's first-in-class BTK inhibition mechanism created a new standard of care, though competition from next-generation BTK inhibitors pressures market share.

AbbVie's oncology strategy focuses on combination therapies and next-generation compounds. The company's pipeline includes 25+ oncology programs exploring novel targets in solid tumors and hematological malignancies. The recent collaboration with Genmab on epcoritamab, a bispecific antibody for lymphomas, demonstrates AbbVie's commitment to cutting-edge modalities. As cancer treatment shifts toward precision medicine and immunotherapy combinations, AbbVie's expertise in both small molecules and biologics provides competitive advantages in developing complex treatment regimens.

The Allergan Integration: Aesthetics and Eye Care

The $63 billion Allergan acquisition in 2020 remains controversial among investors, but operational results vindicate Gonzalez's strategy. Botox Cosmetic continues dominating the medical aesthetics market with 70% share in facial injectables. Post-pandemic recovery drove aesthetics revenue to $5.5 billion in 2024, with Botox Cosmetic growing double-digits as consumers prioritize appearance investments. The aesthetics market's cash-pay nature insulates it from drug pricing pressures while delivering 80%+ gross margins.

Beyond aesthetics, Allergan brought leadership in eye care with drugs like Restasis and Lumigan for glaucoma. AbbVie's commercial infrastructure accelerated growth for newer products like Vyzulta and Durysta, expanding the eye care portfolio to $2 billion annually. The acquisition also included Botox Therapeutic for medical indications including migraines, overactive bladder, and spasticity-a $2.5 billion franchise with steady growth. Combined with tax synergies and operational efficiencies, Allergan contributes over $10 billion in annual revenue while diversifying AbbVie beyond traditional pharmaceuticals.

Financial Fortress: Cash Flow Through Transition

AbbVie's financial management through the Humira transition deserves study in business schools. Despite losing exclusivity on a $20 billion product, the company maintains robust financial metrics: 45% operating margins, $15+ billion in annual free cash flow, and a balance sheet supporting both growth investments and shareholder returns. This isn't accidental-Gonzalez prioritized margin preservation through operational efficiency and strategic pricing on growth brands.

Capital allocation balances growth investment with shareholder returns. AbbVie spends approximately $7 billion annually on R&D (15% of revenue), above the industry average, while returning $10+ billion to shareholders through dividends and buybacks. The dividend, currently yielding 3.4%, consumed just 55% of free cash flow in 2024, providing ample coverage and growth capacity. Debt from the Allergan acquisition is declining ahead of schedule, with net leverage approaching 2.5x EBITDA. This financial flexibility enables opportunistic acquisitions like Cerevel while maintaining the dividend aristocrat status that income investors prize.

Investment Risks and Challenges

  • Biosimilar competition for Humira continuing to erode market share globally
  • Rinvoq safety concerns regarding cardiovascular risks could limit growth potential
  • Patent expirations for Imbruvica (2027) and other key drugs approaching
  • Drug pricing reform legislation threatening U.S. pricing power
  • Clinical trial failures possible given aggressive pipeline expansion
  • Integration risks from multiple large acquisitions requiring management attention
  • Competitive immunology market with new entrants challenging Skyrizi/Rinvoq

Growth Catalysts and Opportunities

  • Skyrizi expansion into inflammatory bowel disease could add $5B+ in peak sales
  • Rinvoq label expansions across additional indications driving utilization
  • Cerevel pipeline advancing with multiple Phase 3 readouts expected
  • Botox Cosmetic international expansion in emerging markets accelerating
  • Next-generation immunology compounds in early development showing promise
  • Strategic partnerships and licensing deals supplementing internal pipeline
  • Manufacturing efficiency improvements expanding margins despite price pressure

R&D Pipeline: The Innovation Engine

AbbVie's pipeline of 90+ programs represents one of the industry's most robust early and mid-stage portfolios. The strategy emphasizes first-in-class mechanisms over fast-follower approaches, accepting higher risk for potentially greater rewards. In immunology, next-generation compounds targeting novel pathways like TYK2 inhibition could offer advantages over current JAK inhibitors. The oncology pipeline explores innovative combinations and new modalities including ADCs (antibody-drug conjugates) and cell therapies.

Perhaps most intriguing is AbbVie's venture into adjacent areas like migraine prevention with Qulipta and acute treatment with Ubrelvy. These calcitonin gene-related peptide (CGRP) antagonists address a massive market with limited effective options. Early launch metrics show strong uptake, validating AbbVie's expansion beyond core therapeutic areas. The company's R&D productivity, measured by pipeline advancement and approval rates, ranks among industry leaders-critical for sustaining growth as current blockbusters mature.

Management Excellence: The Gonzalez Legacy

Richard Gonzalez's tenure as CEO transforms the traditional pharmaceutical playbook. Rather than milking Humira until biosimilar destruction, he proactively built a diversified portfolio through internal innovation and strategic acquisitions. His willingness to make bold moves-like the Allergan acquisition during COVID uncertainty-while maintaining operational discipline sets AbbVie apart from peers paralyzed by patent cliff fears.

The management team depth extends beyond Gonzalez. Jeffrey Stewart (Commercial Operations) orchestrated the successful Skyrizi/Rinvoq launches. Tom Hudson (R&D) transformed pipeline productivity. Rob Michael (CFO) managed complex financings while maintaining credit ratings. This bench strength ensures continuity as Gonzalez approaches retirement age, with several internal candidates capable of maintaining AbbVie's strategic direction. Executive compensation tied to pipeline advancement and total shareholder returns aligns management with long-term value creation.

Valuation Perspective: Quality at a Reasonable Price

At $175 per share, AbbVie trades at 15x forward earnings-a discount to pharmaceutical peers averaging 18x despite superior growth prospects. The market appears to overweight Humira's decline while undervaluing the growth portfolio's potential. On an EV/EBITDA basis, AbbVie's 11x multiple suggests skepticism about sustaining margins through the transition. Yet operating leverage from Skyrizi/Rinvoq scale and Allergan synergies should expand margins over time.

Discounted cash flow analysis using conservative assumptions (5% revenue growth, stable margins, 9% WACC) yields fair value of $200-210 per share. The bull case-Skyrizi/Rinvoq exceeding forecasts, successful Cerevel integration, margin expansion-pushes valuation above $250. Even pessimistic scenarios assuming greater biosimilar impact and pipeline setbacks support $150+ given the dividend yield and cash generation. This asymmetric risk-reward profile, combined with management's execution track record, creates compelling value for patient investors.

Investment Recommendation by Type

Conclusion

STRONG BUY for income and value investors seeking pharmaceutical exposure with defensive characteristics. AbbVie's successful transition from Humira dependence, robust pipeline, and shareholder-friendly capital allocation create multiple paths to outperformance. The current valuation discount relative to peers provides an attractive entry point for investors willing to look beyond near-term Humira headlines to the company's diversified future. With 15x forward P/E, 3.4% yield, and proven management execution, AbbVie offers a rare combination of growth, income, and value in large-cap pharma.

Bull Case
$250 (43% upside)
Base Case
$210 (20% upside)
Bear Case
$150 (14% downside)

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