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How Will AbbVie's Neuroscience Franchise Perform in Q2 Earnings?

How Will AbbVie's Neuroscience Franchise Perform in Q2 Earnings?

Globe and Mail22-07-2025
AbbVie ABBV holds a leadership position in the neuroscience space, which encompasses blockbuster medications such as Botox Therapeutic and depression drug Vraylar. Over the years, the company has further expanded this franchise to now include oral migraine drugs Qulipta and Ubrelvy and, most recently, Vyalev (for Parkinson's disease). Sales from the neuroscience segment accounted for over 17% of AbbVie's first-quarter revenues, which grew 16% year over year.
Our model estimates second-quarter 2025 sales for the overall neuroscience franchise to be $2.5 billion, representing around 15% year-over-year growth. Higher sales of Botox Therapeutic and Vraylar are likely to have contributed to growth during the quarter. Sales of Ubrelvy and Qulipta might have benefited from market share gains across their respective approved indications.
While Vyalev was recently launched in the United States and is expected to have delivered modest domestic revenues in the second quarter, the drug is already approved in several international markets. As such, a majority of Vyalev's second-quarter sales are likely to have come from ex-U.S. regions.
Though AbbVie's neuroscience portfolio continues to grow meaningfully, investor focus will largely remain on its immunology franchise, which houses three flagship drugs — Humira, Rinvoq and Skyrizi. All eyes will be on the magnitude of their sequential growth and market share gains when the company reports second-quarter results on July 31.
Competition in the Neuroscience Space
Other bigger players in this space are Biogen BIIB and Johnson & Johnson JNJ.
Despite the steeply declining revenues of its multiple sclerosis franchise, Biogen generates more than half of its top line from neuroscience therapies. BIIB is one of the handful of companies that markets an FDA-approved treatment for Alzheimer's disease (AD), Leqembi, in partnership with Eisai. Biogen also markets Zurzuvae, the first and only FDA-approved oral treatment for postpartum depression (PPD).
While not competing with Biogen directly in the neuroscience space, AbbVie is actively developing AD therapies as part of its neuroscience expansion strategy.
J&J markets several leading neuroscience products, led by the blockbuster antidepressant nasal spray Spravato and antipsychotic drug Invega Sustenna. Both remain key growth drivers for the company's pharma unit. In April, J&J closed the acquisition of Intra-Cellular Therapies, which added antidepressant drug Caplyta to its neuroscience portfolio. While already approved for schizophrenia and bipolar depression, a regulatory filing is under FDA review for the drug in a third indication — major depressive disorder — with a regulatory decision expected later this year.
ABBV's Price Performance, Valuation and Estimates
Shares of AbbVie have outperformed the industry year to date, as shown in the chart below.
From a valuation standpoint, AbbVie is not very cheap. Based on the price/earnings (P/E) ratio, the company's shares currently trade at 14.06 times forward earnings, a tad lower than its industry's average of 14.60. The stock is cheaper than some other large drugmakers, such as Eli Lilly and Novo Nordisk, but priced much higher than most other large drugmakers. The stock is currently trading above its five-year mean of 12.55.
While the EPS estimates for 2025 have declined from $12.32 to $11.98, the same for 2026 have increased from $14.06 to $14.08 over the past 30 days.
AbbVie currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
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Biogen Inc. (BIIB): Free Stock Analysis Report
Johnson & Johnson (JNJ): Free Stock Analysis Report
AbbVie Inc. (ABBV): Free Stock Analysis Report
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How To Choose A Treadmill (And A Few Of Our Favourite Models For 2025)
How To Choose A Treadmill (And A Few Of Our Favourite Models For 2025)

CTV News

time12 minutes ago

  • CTV News

How To Choose A Treadmill (And A Few Of Our Favourite Models For 2025)

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Carney meeting with cabinet, premiers to discuss latest U.S. tariffs
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Toronto Sun

time2 hours ago

  • Toronto Sun

Carney meeting with cabinet, premiers to discuss latest U.S. tariffs

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Strength in Aerospace Technologies Unit Drives Honeywell: Can It Sustain?
Strength in Aerospace Technologies Unit Drives Honeywell: Can It Sustain?

Globe and Mail

time2 hours ago

  • Globe and Mail

Strength in Aerospace Technologies Unit Drives Honeywell: Can It Sustain?

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