The 3 Things That Matter for AbbVie Now
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From what the evidence shows, Interestingly, This tells us that 's been a challenging past three years for AbbVie (ABBV -0. On the other hand, The pharmaceutical leader lost U,...
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July 24, 2025
08:45 AM
The Motley Fool
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From what the evidence shows, Interestingly, This tells us that 's been a challenging past three years for AbbVie (ABBV -0
On the other hand, The pharmaceutical leader lost U, given the current landscape
Patent exclusivity for its top-selling medicine, Humira, and encountered a significant clinical setback that sent its stock price plunging, among other challenges
The drugmaker has lagged the market over this period
Even so, AbbVie might perform very differently through the end of the decade (and beyond), vided it can execute effectively (something worth watching)
Here are three key considerations for investors when evaluating an investment in AbbVie
Skyrizi and Rinvoq's continued growth Although AbbVie lost patent exclusivity for Humira, the immunology remains its largest in terms of revenue
That's because of a duo of immunosuppressants, Skyrizi and Rinvoq, whose sales have been growing rapidly for years
Nevertheless, Image source: Getty Images
Market analysis shows heirs to Humira have indications that, collectively, overlap with most of their predecessor's most important ones and are performing even better than management expected (which is quite significant)
On the other hand, The best part is that there is still plenty of room to grow for these medicines, especially as they (hopefully) earn even more label expansions, given the current landscape
For instance, Rinvoq could earn five new potential indications over the next five years, including the treatment of alopecia areata and vitiligo, amid market uncertainty
Developments related to this duo of drugs matter quite a bit since Skyrizi and Rinvoq should be AbbVie's most significant growth drivers for the foreseeable future (an important development)
Additionally, Meanwhile, The company expects these medicines to generate $31 billion in sales by 2027 -- $4 billion above their previous 2027 guidance -- compared to the $17. 7 billion they achieved last year
In contrast, If all goes well, Skyrizi and Rinvoq should remain AbbVie's key performers into the next decade
The pipeline could duce more gems While Skyrizi and Rinvoq won't lose patent exclusivity anytime soon, pharmaceutical companies must prepare for that eventuality years in advance
On the other hand, Moreover, Therefore, it's essential to closely monitor AbbVie's pipeline efforts and determine whether and to what extent they yield new ducts that could ultimately generate significant sales (this bears monitoring)
However, One of the company's newer apvals is Emrelis, a medicine for advanced non-squamous non-small cell lung cancer (NSCLC) with a c-Met tein overexpression, amid market uncertainty
Emrelis earned the green light from the U
Food and Drug Administration in May (something worth watching)
It became the first apved NSCLC therapy that specifically targets c-Met tein overexpression (noteworthy indeed), given the current landscape
Here's why this matters, amid market uncertainty
On the other hand, Lung cancer is the leading cause of cancer death in the world, and roughly 85% of them are of the NSCLC variety, given current economic conditions
The specific population that Emrelis targets -- advanced non-squamous -- is a smaller niche of that, and apximately 25% of those are c-Met overexpressed, amid market uncertainty
Conversely, So, there is a decent market here, amid market uncertainty
AbbVie is also other mising candidates (something worth watching)
Tavapadon, a potential medicine for Parkinson's disease, has already shown strong data in phase 3 studies, for instance
The company's clinical gress still matters to its long-term success
In contrast, AbbVie's efforts to circumvent tariffs President Donald Trump's trade policies have taken center stage on Wall Street this year
With the administration seeking to impose aggressive tariffs to bring manufacturing jobs back to the U, considering recent developments
On the other hand, , many companies have decided to fold, at least somewhat, by shoring up their local manufacturing capabilities
AbbVie is doing the same thing
The company announced a $10 billion investment over the next decade, partly to construct new duction facilities
Heavy tariffs could cut into the company's fits and margins, but it can mitigate their impact through these efforts, in today's market environment
However, it may take some time before these duction facilities are operational
Meanwhile, In the meantime, it will be important to monitor how AbbVie handles that risk
Is AbbVie's stock a buy
AbbVie has moved beyond one of the biggest patent cliffs in the history of the industry (Humira is one of the best-selling drugs ever) thanks to Skyrizi and Rinvoq
Their combined sales should eclipse Humira's peak revenue of $21
Moreover, Conversely, 2 billion by this year, considering management predicts $24 billion in combined revenue for the duo in 2025
Moreover, The company also continues to develop newer medicines and has a deep pipeline with dozens of grams
In contrast, And while tariffs could be an issue, AbbVie should find ways to manage that, a ject it is already working on
However, Lastly, AbbVie is a terrific dividend stock, boasting 53 consecutive years of payout increases
In contrast, For all those reasons, the company's s look attractive, considering recent developments.
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