Humira’s reign has come to an end, but it’s not the end for AbbVie.
AbbVie’s Humira was the biopharmaceutical company’s top-selling drug for two decades, generating $21 billion of revenue in 2022 alone.
But the treatment for arthritis and other conditions lost U.S. exclusivity in 2023 and declined in sales as biosimilar competitors — drugs effectively the same in safety and efficacy as current medications that’ve been approved by the Food and Drug Administration — entered the market.
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That is why the market saw AbbVie make a number of acquisitions to expand its pipeline and offset that loss.
In 2024, the company bought neuroscience-drug developer Cerevel Therapeutics, cancer-drug developer ImmunoGen, and Alzheimer’s therapy developer Aliada, deals valued at a total of more than $20 billion.
AbbVie Chief Executive Robert Michael. The company has made a number of acquisitions to offset the loss of exclusivity from Humira.
AbbVie
Fidelity recently named AbbVie one of its top income-stock picks for 2025, selecting it from a group with dividend yields of at least 3.5% and a five-year average dividend-growth rate of 5.9% or higher.
Related: Fidelity unveils stocks to target for the rest of 2025
Since early 2022, when interest rates were much lower, stock yields have struggled to compete with higher-yielding investments. “But rates came down in 2024 and more cuts are expected in 2025,” Fidelity said.
That could “further even out the field when comparing stock yields with other investments that generate income,” according to the mutual-fund giant.
AbbVie is paying its shareholders $6.56 a share annually, with a forward — expected — dividend yield of 3.73%.
AbbVie stock moved up after Q4 earnings
AbbVie stock (ABBV) moved up 3.4% on Feb. 3, making it one of the top five performers in the S&P 500 index for the day.
The rally followed several analyst upgrades, which in turn came after the company posted its Q4 earnings results last week.
AbbVie reported Q4 adjusted earnings of $2.16 a share, missing the consensus of $2.26. Revenue for the quarter was $15.1 billion, beating Wall Street’s estimate of $14.83 billion.
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For the full year 2025, the North Chicago company forecasts adjusted earnings per share of $12.12 to $12.32, in line with the $12.13 Wall Street analyst consensus. AbbVie estimates revenue at $59 billion, just shy of the $59.07 billion estimate.
“Twenty-twenty-four was a year of significant progress for AbbVie,” Chief Executive Robert A. Michael said in a statement.
“Our growth platform delivered outstanding results, we advanced our pipeline with key regulatory approvals and promising data, and we strengthened our business through strategic transactions.
“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.”
AbbVie also affirmed its expectations for a high-single-digit compounded annual revenue growth rate through 2029.
AbbVie stock gained 14.67% in 2024.
Analysts raise AbbVie stock price targets
Several analysts have raised their stock price targets for AbbVie after its earnings and outlook.
Citi raised its target on AbbVie to $215 from $205 and maintained a buy rating, according to thefly.com.
AbbVie delivered another Q4 beat, with its 2025 projected Skyrizi and Rinvoq revenue of $24 billion exceeding consensus estimates, Citi argued.
Skyrizi and Rinvoq are AbbVie’s immunology drugs, which could replace Humira as the company’s top revenue drivers. Their growth potential showcases AbbVie’s ability to move on from Humira’s loss, according to Citi.
BMO Capital also raised AbbVie’s price target to $215, from $208, with an outperform rating. The investment firm cited reasons similar to those Citi noted, in particular that growth in Skyrizi and Rinvoq could help the company move on from the Humira loss.
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Guggenheim raised its price target on AbbVie to $214 from $212 and reiterated a buy rating. The investment firm noted that AbbVie had a “solid growth outlook at least through the end of the decade,” the analyst said.
AbbVie stock at last check was trading 3.4% higher above $190. The stock is up 8.1% year-to-date.
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