Latest news with #Humira
Gulf Insider
22-07-2025
- Health
- Gulf Insider
What To Know About Big Pharma, In Charts
Prescription drugs provide relief from pain, fight infection, stabilize moods, reduce inflammation, combat dread diseases, and extend lives. These medications have become a fact of life for many—perhaps most—Americans. On average, half of them took at least one prescription drug in a given month, according to a recent CDC survey. More than 13 percent took five or more. And the rate is growing. In 2020 Americans filled 6.4 billion prescriptions, about 19 per person. By 2023, Americans were consuming more than 210 billion daily doses of medication annually. That's more than 600 pills, shots, drops, IVs, creams, mists, or suppositories for every person in the country. A child born in 2019 in the United States can expect to spend roughly half of his or her life taking prescription medications, according to Jessica Y. Ho, a researcher at Pennsylvania State University. The United States consumes more prescription drugs than any country in the world and spends nearly twice as much for them as all other nations combined. Global pharmaceutical sales were estimated at $1.6 trillion in 2023, according to Statista. That's roughly equal to the gross domestic product of Spain and nearly double that of Switzerland. The ten largest pharmaceutical companies in the United States alone have a combined worth of more than $2.1 trillion. Recent growth in the industry has been driven by the creation of new types of medications including biologics and peptides. These medications can be highly effective but also very expensive. Biologics are drugs derived from living sources rather than chemicals. Medicare paid nearly $66,000 per patient for prescriptions of Humira in 2023. That's a biologic medication to treat rheumatoid arthritis, plaque psoriasis, and other diseases. Development of biologics has more than tripled over the last decade. The Food and Drug Administration (FDA) approved 17 biologics in 2023, up from an average of 4 per year between 1999 and 2013. Americans consumed 72 percent of the top 50 biologic drugs sold in the world in 2022, according to the Department of Health and Human Services. Peptides are drugs that mimic the function of certain substances within the human body. A particular type of peptide called GLP-1 helps regulate blood sugar and appetite. Ozempic, Weygovy, and Trulicity are GLP-1 medications. Medicare Part D alone paid more than $22 billion to provide GLP-1 medications in 2023, an increase of nearly 130 percent in two years. Currently, the GLP-1 market is dominated by Novo Nordisk, Eli Lilly, AstraZeneca, and Sanofi, though others are working to develop similar medications. U.S. drug prices were more than double those in other countries as of 2022, and more than 4 times as much for brand-name drugs, according to global consulting firm RAND. Pharmaceutical companies do considerable business with the federal government, deriving $387 billion in payments from Medicare Part D and Medicaid in 2023 alone. Pharmaceutical companies and some 100 allied political action committees spent more than $15 million in campaign contributions during each of the last two presidential elections, and nearly as much during the mid-terms. Those amounts are overshadowed by the pharmaceutical industry's annual lobbying expenditures. The industry spent more than $150 million to influence federal and state legislatures in 2024. Of its more than 700 lobbyists, nearly two thirds were former government employees. The pharmaceutical lobby spent more money over the past quarter century than did electric utilities, oil and gas companies, hospitals and nursing homes—more than the automotive and defense aerospace industries combined. Research Developing new medications is expensive. The average cost of bringing a new drug market can range up to $2 billion, according to data cited by the Congressional Budget Office. Congress aided companies investing in research via the One Big Beautiful Bill Act, which includes a provision for makers of drugs that treat rare diseases. The law widens the definition of a rare disease drug and further delays Medicare price negotiations on drugs that treat them. That allows the makers of those drugs to continue charging Medicare full price for the medications, in order to fund future research. Normally, a drug that has been marketed for at least 9 years and receives $200 million per year in Medicare payments would be eligible for price negotiation.
Yahoo
11-07-2025
- Business
- Yahoo
ABBV or BMY: Which Biopharma Giant Has Better Prospects for Now?
AbbVie, Inc. ABBV and Bristol Myers Squibb BMY are leading drugmakers with broad and diverse portfolios and a global footprint. AbbVie is a global, diversified biopharmaceutical company with a dominant position across key therapeutic areas, including immunology, neuroscience, oncology, aesthetics and eye care. On the other hand, Bristol Myers is focused on discovering, developing and delivering transformational drugs for oncology, hematology, immunology, cardiovascular, neuroscience and other diseases. Both of these biopharma/biotech giants have strong footholds in their targeted businesses, delivering consistent returns to shareholders. In such a scenario, choosing one stock over the other can be tricky. Let us delve into their fundamentals, potential growth prospects, challenges and valuation levels to make a prudent choice. AbbVie's flagship drug Humira has lost patent protection both in the United States and Europe. Biosimilar competition significantly eroded the drug's sales in 2024, and the decline is expected to be sharper in 2025. Nonetheless, the acquisition of Botox maker Allergan for $63 billion in May 2020 has bolstered the product portfolio and lowered its dependence on Humira. ABBV's immunology drugs Skyrizi and Rinvoq have put up a stellar performance and positioned it well for long-term growth. These drugs are witnessing strong uptake across their approved indications, especially in the popular inflammatory bowel disease space, which includes two conditions, ulcerative colitis and Crohn's disease. Strong sales of these drugs have enabled AbbVie to offset the decline in sales of the blockbuster drug Humira. AbbVie has also built a strong oncology franchise with drugs like Imbruvica and Venclexta. Label expansion over the past couple of years have significantly expanded the eligible patient population for Venclexta. This, in turn, is boosting sales of the drug. In October 2024, AbbVie gained approval for Vyalev, a transformative therapy for treating advanced Parkinson's disease. Approval of new drugs further expands ABBV's portfolio. AbbVie has several promising R&D programs with the potential to drive long-term growth. This includes next-generation approaches in immunology, a focus on bispecifics, ADCs, as well as innovative therapies for neuropsychiatric and neurodegenerative disorders. The company has also been active on the M&A front. It acquired ImmunoGen, which added antibody-drug conjugate, Elahere and neuroscience drugmaker Cerevel Therapeutics in 2024. As of March 31, 2025, AbbVie had $64.5 billion in long-term debt and $5.4 billion in short-term debt/obligations on its balance sheet. Cash and cash equivalents totaled approximately $5.2 billion. However, increasing competitive pressure on Imbruvica and slowing sales of its aesthetics franchise are major headwinds, along with declining Humira sales. BMY's Growth Portfolio, comprising drugs like Reblozyl, Breyanzi, Camzyos and Opdualag, has stabilized its revenue base amid generic competition for its legacy drugs. Thalassemia drug Reblozyl has put up a stellar performance since its approval, posting strong growth in the United States and international markets. The drug is expected to contribute significantly in the coming decade. Sales of its oncology drug, Opdualag, have also been robust, fueling the top line. Strong growth in the U.S. market and encouraging uptake in newly launched markets have boosted sales. Strong momentum in Camzyos should further drive growth. Opdivo continues to maintain momentum on consistent label expansions. The FDA approval of Opdivo Qvantig (nivolumab and hyaluronidase-nvhy) injection for subcutaneous use should help extend the impact of its immuno-oncology franchise to patients into the next decade. Other drugs like Zeposia and Krazati should also contribute to top-line growth. The company has made strategic acquisitions to broaden its portfolio and drive top-line growth. The recent FDA approval for xanomeline and trospium chloride (formerly KarXT), an oral medication for the treatment of schizophrenia in adults, was approved under the brand name Cobenfy. The approval of Cobenfy for schizophrenia broadens BMY's portfolio and validates the acquisition of Karuna Therapeutics. While the newer drugs boost sales, generic competition for legacy drugs, which account for the majority of total revenues, is a significant headwind and will affect top-line growth in the near term. Legacy Portfolio revenues declined 20% in the first quarter due to continued generic impact on Revlimid, Pomalyst, Sprycel and Abraxane, as well as the U.S. Medicare Part D redesign effect. Nonetheless, BMY is looking to boost its bottom line through cost-cutting initiatives. While BMY's strategy of acquiring companies with promising drugs and candidates is encouraging, this has resulted in substantial debt to finance these acquisitions. As of March 31, 2025, the company had cash and equivalents of $12.1 billion and a long-term debt of $46.1 billion. The Zacks Consensus Estimate for ABBV's 2025 sales implies a year-over-year increase of 6.6%, and that for earnings per share (EPS) suggests an improvement of 20.65%. However, EPS estimates for 2025 have moved south in the past 60 days. Image Source: Zacks Investment Research The Zacks Consensus Estimate for BMY's 2025 sales implies a year-over-year decrease of 4.13%, while that for EPS suggests an increase of 487.83%. The extraordinary EPS growth rate is attributed to an extremely low EPS figure in 2024 due to acquisition expenses. EPS estimates for both 2025 and 2026 have moved south in the past 60 days. Image Source: Zacks Investment Research From a price-performance perspective, ABBV has fetched better returns than BMY so far this year. Shares of ABBV have gained 11.8%, while those of BMY have lost 11.2%. The large-cap pharma industry has gained 1.6% in the said period. Image Source: Zacks Investment Research From a valuation standpoint, we use the P/E ratio of the large-cap pharma industry to compare these companies. Going by the same, ABBV is slightly more expensive than BMY. ABBV's shares currently trade at 14.76X forward earnings, higher than 7.60X for BMY. The large-cap pharma industry currently trades at 15.16X forward earnings. Image Source: Zacks Investment Research Both ABBV and BMY have an attractive dividend yield. This is a strong positive for investors. However, BMY's dividend yield of 5.20% is higher than ABBV's 3.4%. Large pharma/biotech companies are generally considered safe havens for investors interested in this sector. However, with both ABBV and BMY stocks currently carrying a Zacks Rank #3 (Hold), choosing one over the other is a complex task. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. ABBV has a strong and diverse portfolio. Immunology drugs Skyrizi and Rinvoq maintain momentum for the company. However, declining Humira sales, increasing competitive pressure on Imbruvica and slowing sales of its aesthetics franchise are major headwinds for the company. BMY's efforts to revive the top line in the face of generic challenges for key drugs are commendable. Approval of new drugs and label expansion of key drugs should generate incremental revenues for the company. However, we believe there is still time before the efforts reap a harvest for the company. The outlook for 2025 indicates challenges as of now. While both companies deal with patent cliffs, we believe ABBV is a better pick at present, primarily due to the diversity and strength of its portfolio. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Bristol Myers Squibb Company (BMY) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
09-07-2025
- Business
- Yahoo
Big pharma braces for revenue headwinds as patent expiries loom
One of the biggest patent cliffs is set to hit the pharmaceutical industry this decade, with major players bracing for a blow to their revenue streams, according to market analysis. A recent report by GlobalData projects that the share of global drug sales under patent protection will decline by 2030. Only 4% of global drugs sales will have patent protection, compared to 12% and 6% in 2022 and 2024. Historically, the loss of patent exclusivity can have big bearings on a company's financial prospects. Biosimilars and generics flood the market upon patent loss, which exerts pricing pressure on the branded product. There has been a push by the Trump administration to increase biosimilar and generic drug use in the US. In May 2025, the US president signed an executive order that overhauled pharmaceutical pricing in the country. According to a Reuters article, pharma companies launched new US drugs at prices 35% higher in 2023, compared to those launched in 2022. Biosimilars and generics can be as much as 80% cheaper than branded alternatives. For example, AbbVie's anti-inflammatory blockbuster Humira (adalimumab) used to be one of the top-selling drugs world, with the drug generating $21.2bn in sales in its last year of market exclusivity. Whilst still a heavyweight in the monoclonal antibody arena, revenue is forecast to slump to $2.6bn by 2030, as per a separate analysis by GlobalData. Other drugs are set to face competition too, with both MSD's Keytruda (pembrolizumab) and Johnson & Johnson's (J&J) Darzalex/Faspro (daratumumab and hyaluronidase-fihj) losing US exclusivity by 2029, representing a particular headwind in oncology. Keytruda, approved to treat a range of solid tumours, was the top selling drug in the world in 2024, netting over $29bn in annual sales. Revenue loss for MSD and J&J's products will contribute to a US drug market that is set to lose over $230bn between this year and 2030. Bristol Myers Squibb (BMS) is forecast to be most affected by the patent cliff. Anticoagulant Eliquis (apixaban) and immunotherapy Opdivo (nivolumab), two of BMS's blockbuster drugs, account for a significant portion of company's annual revenue. They are both set to lose exclusivity over the next few years, with GlobalData analysts forecasting a dent to BMS's financial outlook. George El-Helou, strategic intelligence analyst at GlobalData, comments: 'More than half of the top 15 pharma companies are expected to face challenges in managing the impact of the upcoming patent cliff. However, some companies have pipeline drugs forecast to offset part of these losses.' A company expected to fare well during this time is Eli Lilly, with revenue forecast to improve by 165% in 2030. This will largely be driven by the company's glucagon like peptide-1 receptor agonist (GLP-1RA) tirzepatide, sold under the brand names Mounjaro and Zepbound for weight loss and type 2 diabetes respectively. El-Helou noted that pharma companies could strengthen their pipelines by acquiring early-stage biotechs developing promising therapies, increasing investment in R&D, and targeting diseases with high unmet needs. Hannah Hans, head of pharma strategic intelligence at GlobalData, says: 'It is critical to plan from both a patent and regulatory perspective, while also embedding lifecycle management strategies early on in development. This integrated approach will help optimise long term value. The current patent cliff implications on pharma companies include loss of revenue and pricing pressures, however there are several opportunities for companies to focus on innovative therapies and re-defining their portfolio." Hans concludes: 'This opens up a significant opportunity for biotech companies to partner with pharma on next generation therapies, novel delivery platforms and differentiated formulations as companies look to strengthen their pipeline.' "Big pharma braces for revenue headwinds as patent expiries loom" was originally created and published by Pharmaceutical Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Business Insider
05-07-2025
- Business
- Business Insider
AbbVie's (ABBV) Forecasts Lower Q2 EPS on R&D Costs
AbbVie (ABBV) expects a $0.42 drop in second-quarter earnings per share (EPS), driven by a hefty $823 million pre-tax expense tied to acquired research and development (R&D) and milestone payments. The pharmaceutical giant is doubling down on external innovation to expand its drug pipeline. Don't Miss TipRanks' Half-Year Sale Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. These expenses stem from deals like collaborations and licensing agreements, but AbbVie does not forecast them in advance due to their unpredictable timing. As a result, AbbVie has revised its Q2 adjusted EPS guidance to $2.84–$2.88, down from earlier projections. Full-year guidance has also been trimmed to $11.67–$11.87, reflecting the impact of the one-time charge. AbbVie Eyes Long-Term Growth The expense reflects AbbVie's strategy to secure future growth amid looming patent expirations, especially for its key immunology drug, Humira. By investing in new drug candidates and technologies, the company aims to maintain its competitive edge in key therapeutic areas like oncology, neuroscience, and immunology. While investors may be rattled by the earnings dip, the move signals a long-term play. AbbVie's pipeline includes over 90 programs in clinical development, with more than half in mid- or late-stage trials. ABBV Makes $2.1B Bet on Capstan The guidance cut follows the company's announcement of a $2.1 billion Capstan Therapeutics acquisition to boost its pipeline with next-gen cell therapy tech. The deal includes Capstan's lead drug, CPTX2309, a Phase 1 in vivo CAR-T therapy aimed at treating autoimmune diseases by reprogramming immune cells inside the body using mRNA and lipid nanoparticles. Overall, AbbVie's efforts to expand its drug pipeline are impressive and bode well for long-term growth. Is ABBV a Buy, Hold, or Sell? Turning to Wall Street, ABBV stock has a Moderate Buy consensus rating based on 11 Buys and six Holds assigned in the last three months. At $213, the average AbbVie price target implies a 12.53% upside potential. The stock has gained 5.1% over the past six months.
Forbes
02-07-2025
- Business
- Forbes
AbbVie Stock At $190: Premium Pricing For A Transformation Story
CANADA - 2025/04/03: In this photo illustration, the AbbVie logo is seen displayed on a smartphone ... More screen. (Photo Illustration by Thomas Fuller/SOPA Images/LightRocket via Getty Images) AbbVie (NASDAQ:ABBV) has distinguished itself as one of the top performers in the healthcare sector this year, with its stock rising by 6% while the broader S&P 500 healthcare index fell by 1%. This outperformance is indicative of investor confidence in the pharmaceutical giant's ambitious transformation strategy as it navigates the post-Humira period. AbbVie's journey starts with recognizing the scale of its Humira challenge. Once the world's leading pharmaceutical drug (excluding the Covid-19 vaccines), Humira achieved peak sales of $21.2 billion in 2022. However, biosimilar competition has severely impacted its market share, with sales dropping 58% from its peak to $9 billion last year. This decrease signifies a substantial revenue gap that could have incapacitated many companies. Instead of yielding to this pressure, AbbVie has embarked on an aggressive acquisition strategy to enhance its portfolio and broaden its revenue sources. The company's approach has been both methodical and significant, focusing on high-growth therapeutic areas with substantial market potential. For investors seeking lower volatility than individual stocks, the Trefis High Quality portfolio offers an alternative — having outperformed the S&P 500 and delivered returns surpassing 91% since its inception. Additionally, see – SOFI Stock To $30? An Acquisition Spree with Strategic Intent Since the start of 2024, AbbVie has executed an impressive series of acquisitions totaling over $22 billion in deal value. The acquisitions cover various therapeutic areas, showcasing the company's dedication to diversification: This acquisition spree is indicative of more than just opportunistic dealmaking—it signifies a tactical plan to secure leadership positions in high-growth therapeutic sectors while minimizing reliance on any singular asset. AbbVie's history implies this acquisition strategy could yield remarkable returns. The firm's 2016 collaboration with Boehringer Ingelberg serves as an example of this success. For an upfront investment of $595 million, AbbVie obtained global rights to what would become Skyrizi for psoriasis and related indications. That investment has proven immensely profitable, with Skyrizi producing $11.7 billion in sales in 2024. This success story offers a blueprint for how AbbVie's current acquisitions might progress, contingent upon the company's ability to effectively integrate these assets and realize their commercial potential. Even with Humira's declining sales, AbbVie managed to achieve 4% revenue growth last year, showcasing the resilience of its broader portfolio and the preliminary advantages of its acquisition strategy. The company anticipates accelerating revenue growth to high single-digits over the next few years, with even greater earnings growth projected as margins enhance. Valuation Considerations and Market Premium Investors have responded positively to AbbVie's strategic methodology, boosting the stock to approximately $190 per share. At present, the company is trading at 18.5 times its trailing adjusted earnings of $10.27 per share. This valuation signifies a considerable premium relative to AbbVie's historical average of 14x over the past three years and most major pharmaceutical competitors. Bristol Myers Squibb, Merck, and Pfizer are trading at 10 times or less their trailing adjusted earnings, while Johnson & Johnson, Amgen, and Gilead command valuations of 14–15 times. AbbVie's premium valuation illustrates investor faith in its growth strategy and operational capabilities. This elevated multiple seems justified considering the company's robust revenue growth trajectory and ongoing pipeline expansion. As the newly acquired assets contribute to growth and margins improve, the valuation premium may prove to be sustainable or even expand further. However, we could be mistaken in our evaluation. AbbVie's aggressive acquisition strategy has incurred costs to its balance sheet stability. The company currently holds $70 billion in debt against a market capitalization of $336 billion, leading to a debt-to-equity ratio of 21.3%—moderately above the S&P 500 average of 19.4%. More concerning is the company's cash position in relation to its asset base. With only $5.2 billion in cash and equivalents out of $136 billion in total assets, AbbVie's cash-to-assets ratio is alarmingly low at 3.8%. This limited financial flexibility could limit future strategic opportunities or compel the company to rely more extensively on debt financing for future acquisitions. AbbVie's evolution from a Humira-reliant firm to a diversified pharmaceutical powerhouse represents one of the industry's most ambitious strategic shifts. For investors ready to accept balance sheet risks and a premium valuation, the company's execution history and growth potential position it as a possibly attractive long-term investment, even at current levels around $190 per share. On a connected note, are you aware that Merck might confront the same challenges AbbVie did a few years ago with Humira? Explore our insights on – Merck Stock's Ticking Keytruda Time Bomb. Now, there always remains a meaningful risk when investing in a single, or just a handful of stocks. Consider the Trefis High Quality (HQ) Portfolio which, with a collection of 30 stocks, has a track record of comfortably outperforming the S&P 500 over the past 4-year period. Why is that? Collectively, HQ Portfolio stocks delivered superior returns with lower risk compared to the benchmark index; less of a roller-coaster experience, as evidenced in HQ Portfolio performance metrics.
