At the 41st J.P. Morgan Healthcare Conference in San Francisco, AbbVie’s CEO Rick Gonzalez talked about the company’s plans to adjust to the impending loss of exclusivity of Humira (adalimumab) in the U.S. market. Despite the expected near-term impact on AbbVie’s total performance, Gonzalez was confident in AbbVie’s ability to remain well-positioned for continued growth. He outlined the company’s preparations to mitigate the effects of Humira’s loss of exclusivity, ensuring AbbVie is ready to face the challenges ahead.
A Promising Pipeline
AbbVie has a diverse range of assets across its core areas that will fuel its long-term success. From cutting-edge research and development to a robust portfolio of products, the company is well-positioned to capitalize on growth opportunities and remain a leader in its industry.
- Skyrizi (risankizumab-rzaa) and Rinvoq (upadacitinib) have been commercialized in all of Humira’s major indications, and Rinvoq has now made history by becoming the first biologic to be approved for use in treating atopic dermatitis. This is a significant breakthrough in the world of biologics, giving patients more options and access to treatment.
- Skyrizi and Rinvoq are set to become huge money-makers, with projections estimating that by 2025, they will bring in more than $17.5 billion – surpassing Humira’s peak revenue of $21 billion by 2027. To further boost their success, multiple R&D programs are underway to develop treatments for diseases with limited or no existing treatments, such as lupus, alopecia, and vitiligo.
- AbbVie’s flagship cancer therapy, Imbruvica (ibrutinib), looks set to continue generating significant cash flows for the company until the end of the decade. However, competition and market challenges have caused a dip in its outlook. To compensate, Venclexta’s (venetoclax tablets) strong growth is expected to make up for the drop in Imbruvica sales. AbbVie is predicting a global oncology revenue of around $5.7 billion for the year.
- Oncology is set to experience a resurgence in sales by 2026, with breakthrough late-stage assets such as epcoritamab – a potential market leader in CD3-CD20 bispecific treatments for B-cell malignancies – and Navitoclax, being trialed for myelofibrosis, leading the way. AbbVie’s neuroscience business continues to reap rewards, too. Ubrelvy (ubrogepant) and Qulipta (atogepant), both premier treatments for migraine, are projected to reach peak sales figures of at least $1 billion each.
- With the recent approval of Vraylar (cariprazine) as an adjunct for major depressive disorder, the company is expecting peak revenue of nearly $5 billion. But that’s not all – they’re also pushing forward with their pipeline of treatments for neurodegenerative diseases, such as ABBV-951 for Parkinson’s and ABBV-916 for Alzheimer’s. Will these drugs provide the breakthroughs that patients and physicians have been waiting for? Time will tell.
A Unique Investment Opportunity
AbbVie presents a compelling investment opportunity, with an impressive pipeline, a strong portfolio of approved assets and a robust long-term growth outlook. With these factors in mind, it’s clear that AbbVie is well-positioned to deliver attractive returns to shareholders.
- Despite the Humira loss-of-exclusivity event in the U.S., AbbVie is still projected to have the highest revenue growth compared to its competitors in the industry. Furthermore, the company’s exposure to LOEs for the rest of the decade is expected to be one of the lowest, making it a safe bet for investors.
- Since its inception, the company’s quarterly dividend has skyrocketed by 270%, and they are dedicated to maintaining this impressive rate of growth.
- The company is investing in research and development, as well as business development opportunities, to expand its portfolio and develop its pipeline. By doing so, it will be able to create new, innovative products and services that will benefit customers in the long run.
- AbbVie has made remarkable strides with its debt repayments, and is projected to pay off a whopping $34 billion this year – an impressive cumulative sum!