Latest news with #Imbruvica
Globe and Mail
14 hours ago
- Business
- Globe and Mail
AbbVie Adds More Than $24B in 6 Months: How to Play ABBV Stock
AbbVie ABBV stock has risen 8.0% in six months, adding more than $24 billion to its market value. AbbVie has successfully navigated the loss of exclusivity ('LOE') of its blockbuster drug, Humira, by launching two other successful new immunology medicines, Skyrizi and Rinvoq, which are performing extremely well, bolstered by approvals in new indications and are expected to support top-line growth in the next few years. AbbVie has several early/mid-stage candidates that have the potential to drive long-term growth. AbbVie, however, faces its share of headwinds, like Humira biosimilar erosion, increasing competitive pressure on Imbruvica and slowing sales of its aesthetics franchise. Let's understand the company's strengths and weaknesses to better analyze how to play ABBV stock amid the market value growth. ABBV's Successful New Drugs — Skyrizi and Rinvoq AbbVie lost patent protection for Humira in the United States in January 2023 and in the EU in 2018. Humira's sales are declining due to the LOE and biosimilar erosion. However, with approvals for many new indications, sales of Skyrizi and Rinvoq have successfully replaced Humira, which once generated more than 50% of its total revenues. Skyrizi and Rinvoq generated combined sales of $5.1 billion in the first quarter of 2025, reflecting growth of more than 65%. The drugs are seeing strong performance across all approved indications, especially in the popular inflammatory bowel disease (IBD) space, which includes two conditions — ulcerative colitis (UC) and Crohn's disease (CD). Importantly, Skyrizi and Rinvoq have demonstrated compelling head-to-head data against several novel therapies in clinical studies, which have given them a competitive advantage. AbbVie expects combined sales of Skyrizi and Rinvoq to be around $24.7 billion in 2025 and more than $31 billion by 2027. Strong immunology market growth, market share gains and momentum from new indications, such as the recent launch of Skyrizi in UC, as well as the potential for five new indications for Rinvoq over the next few years, are expected to drive these drugs' growth. ABBV Boasts an Attractive Pipeline AbbVie has several early/mid-stage pipeline candidates with blockbuster potential. The company expects several regulatory submissions, approvals and key data readouts in the next 12 months. ABBV has an exciting and diverse pipeline of promising new therapies in blood cancers and solid tumors, like ABBV-383, a BCMA CD3 bispecific (relapsed/refractory multiple myeloma) and Temab-A (metastatic colorectal cancer). Emrelis (previously Teliso-V), a promising antibody drug conjugate or ADC, was approved in the United States for previously treated non-squamous non-small cell lung cancer with high c-Met expression in May 2025. In other areas, some key pipeline drugs are lutikizumab for immunology indications and tavapadon for early Parkinson's disease. AbbVie expects to file a new drug application for tavapadon this year. AbbVie on an Acquisition Spree The company has been on an acquisition spree in the past couple of years, which is strengthening its pipeline. It has signed several M&A deals in the immunology space, its core area, while also inking some early-stage deals in oncology and neuroscience. It has signed more than 20 early-stage deals since the beginning of 2024, including promising technologies and innovative mechanisms that can elevate the standard of care in immunology, oncology and neuroscience. In early 2025, AbbVie bought rights to develop GUB014295 (ABBV-295), a long-acting amylin analog for the treatment of obesity, from Denmark's Gubra. The deal marked AbbVie's entry into the obesity space, dominated by Eli Lilly LLY and Novo Nordisk NVO. AbbVie plans to invest further in obesity. ABBV's Slowing Aesthetics Sales & Humira Erosion Sales of AbbVie's blockbuster drug Humira are declining due to biosimilar erosion. Humira volume is rapidly eroding compared to other novel mechanisms (including Skyrizi and Rinvoq). Humira sales declined by almost 50% in the first quarter of 2025, primarily due to faster erosion of its share as a result of biosimilar competition, as well as further molecule compression in the United States. AbbVie is witnessing declining sales of Juvederm fillers in the United States and China due to challenging market conditions. The slowing growth of the U.S. facial injectables market and persistent economic headwinds, which are affecting consumer spending in China, are hurting AbbVie's aesthetics portfolio sales, which declined 10.2% in the first quarter of 2025. ABBV Stock Price, Valuation and Estimate Revision AbbVie's stock has gained 7.1% so far this year against a decrease of 0.7% for the industry. The stock has also outperformed the industry and the S&P 500 index, as seen in the chart below. ABBV Stock Outperforms Industry, Sector & S&P 500 From a valuation standpoint, AbbVie is not very cheap. Going by the price/earnings ratio, the company's shares currently trade at 14.21 forward earnings, just slightly lower than 14.87 for the industry. The stock is cheaper than some other large drugmakers like Eli Lilly and Novo Nordisk, but is priced much higher than most other large drugmakers. The stock is also trading above its five-year mean of 12.44. ABBV Stock Valuation The Zacks Consensus Estimate for 2025 earnings has risen from $12.21 per share to $12.28, while that for 2026 has increased from $14.03 to $14.06 per share over the past 30 days. ABBV Estimate Movement Stay Invested in ABBV Stock Though AbbVie faces its share of near-term headwinds, the company has faced its biggest challenge — Humira's patent cliff — quite well and looks well-positioned for continued strong growth in the years ahead. AbbVie expects to return to robust revenue growth in 2025, which is just the second year following the U.S. Humira LOE, driven by its ex-Humira platform. AbbVie's ex-Humira drugs rose delivered robust sales growth of more than 21% (on a reported basis) in the first quarter of 2025. Boosted by its new product launches, AbbVie expects to return to robust mid-single-digit revenue growth in 2025 with a high single-digit CAGR through 2029, as it has no significant LOE event for the rest of this decade. A substantial portion of this growth is expected to be driven by the robust performance of Skyrizi and Rinvoq. Rising estimates for AbbVie, its solid pipeline and the prospect of growth in 2025 sales and profits are good enough reasons to stay invested in this Zacks Rank #3 (Hold) stock. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks' Research Chief Picks Stock Most Likely to "At Least Double" Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren't winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%. See Our Top Stock to Double (Plus 4 Runners Up) >> 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 Novo Nordisk A/S (NVO): Free Stock Analysis Report Eli Lilly and Company (LLY): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report
Globe and Mail
4 days ago
- Business
- Globe and Mail
Will AbbVie's Growing Oncology Portfolio Aid Top-line Growth?
AbbVie ABBV has built a substantial oncology franchise. Initially anchored by blood cancer drugs Imbruvica and Venclexta, the company has also been expanding its offerings into solid tumors. Its latest offerings now include Epkinly (for lymphoma), Elahere (for ovarian cancer), and most recently, Emrelis (for lung cancer), bringing the total to five oncology therapies. Sales of the oncology segment accounted for over 12% of AbbVie's total revenues in first-quarter 2025. ABBV has been pursuing both organic and inorganic strategies to drive this expansion. While Epkinly and Elahere were added to the portfolio through acquisitions or collaborations, Emrelis is the company's first internally developed solid tumor drug and also its first lung cancer therapy. Combined with steadily rising Venclexta sales, these newer additions have helped more than offset the fall in Imbruvica sales, which have been declining due to stiff competition from novel oral therapies. Approved last month, we expect Emrelis to start contributing to AbbVie's top line beginning third-quarter 2025. The company also has an exciting and diverse pipeline of promising new therapies in both blood cancers and solid tumors. Notably, etentamig (formerly ABBV-383), a BCMA x CD3 bispecific antibody, is currently being evaluated in a late-stage study for relapsed/refractory multiple myeloma. ABBV is also developing another c-Met targeting ADC called Temab-A (formerly ABBV-400). This drug, being evaluated in a late-stage study for metastatic colorectal cancer, is also in mid-stage development for gastroesophageal cancer. AbbVie is also conducting label expansion studies on its approved products to further strengthen its oncology footprint. Competition in the Oncology Space Other large players in the oncology space are AstraZeneca AZN, Merck MRK and Pfizer PFE. For AstraZeneca, oncology sales now account for nearly 41% of total revenues. Sales in its oncology segment rose 13% in the first quarter of 2025. AstraZeneca's strong oncology performance was driven by medicines such as Tagrisso, Lynparza, Imfinzi, Calquence and Enhertu (in partnership with Daiichi Sankyo). Merck's key oncology medicines are PD-L1 inhibitor, Keytruda and PARP inhibitor, Lynparza, which it markets in partnership with AstraZeneca. Keytruda, approved for several types of cancer, alone accounted for more than 46% of Merck's total revenues in first-quarter 2025. Pfizer's first-quarter oncology revenues grew 7% on an operational basis, driven by drugs like Xtandi, Lorbrena, the Braftovi-Mektovi combination and Padcev. The segment now accounts for over 27% of Pfizer's total revenues. ABBV's Price Performance, Valuation and Estimates Shares of AbbVie have outperformed the industry year to date, as seen 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 13.99 times forward earnings, slightly lower than its industry's average of 14.81. The stock is cheaper than some other large drugmakers, such as Eli Lilly and Novo Nordisk, but is priced much higher than most other large drugmakers. The stock is also trading above its five-year mean of 12.43. The Zacks Consensus Estimate for 2025 earnings has risen from $12.21 per share to $12.28, while that for 2026 has increased from $13.99 to $14.06 over the past 60 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 Names #1 Semiconductor Stock It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom. With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028. See This Stock Now for Free >> 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 AstraZeneca PLC (AZN): Free Stock Analysis Report Pfizer Inc. (PFE): Free Stock Analysis Report Merck & Co., Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report This article originally published on Zacks Investment Research (
Yahoo
27-05-2025
- Business
- Yahoo
1 Top Dividend Stock to Buy for a Lifetime of Passive Income
Johnson & Johnson faces challenges including legal and regulatory troubles, and slow top-line growth. The healthcare leader has a solid and diversified business that can overcome these headwinds. J&J has increased its dividend for 62 consecutive years. 10 stocks we like better than Johnson & Johnson › There are hundreds of dividend stocks on the market, but they don't all offer the same level of security. Some haven't increased their payouts in years. Others may provide irregular dividend hikes, which will likely stop if the economy tanks or company-specific issues hit. Still others have cut their payouts in recent years. These aren't the kind of stocks income seekers are looking for. Instead, dividend investors want corporations that consistently raise their payouts, preferably every year, and are unlikely to stop even when they face headwinds. One company that has what it takes to do that is Johnson & Johnson (NYSE: JNJ). Here's why this longtime dividend payer is worth holding on to for good. Let's start with the bear case for Johnson & Johnson. Over the past few years, it has dealt with several issues. We'll consider three. First, it is still facing a litany of lawsuits related to talc-based products that allegedly gave consumers cancer. The company recently failed to put a lid on most of these lawsuits when a judge stopped its attempt to settle with most plaintiffs. So it looks like this headwind will continue. Second, recent regulatory changes in the U.S. could eventually hurt its revenue. The U.S. Centers for Medicare and Medicaid Services (CMS) now has the authority to negotiate the prices of some of the drugs Medicare spends the most on. The first round of negotiations features three of J&J's medicines: Blood thinner Xarelto, immunosuppressant Stelara, and blood-cancer medicine Imbruvica. All will see significant price cuts for Medicare patients. Third, the company has dealt with relatively slow revenue growth. However, despite all that, Johnson & Johnson looks like an attractive long-term option for dividend-seekers. J&J didn't get to be one of the largest healthcare companies in the world by accident. The company has constantly developed newer and better products in its pharmaceutical and medical-technology businesses. It boasts a deep lineup of medicines across several therapeutic areas, including immunology, oncology, infectious diseases, and neuroscience. It has more than 10 drugs that each generate more than $1 billion in annual sales. Its med-tech unit is also diversified across several areas. Its pipeline features several dozen programs. And the drugmaker constantly earns brand-new approvals or label expansions. In other words, it has an incredibly robust underlying business that's well equipped to handle the challenges it faces. The price cuts for Xarelto, Stelara, and Imbruvica will only take effect next year. And even then, they will have a minimal impact on the company's results because none of these drugs feature in its long-term growth plans. Sales of Stelara and Imbruvica are already declining due to competitive pressure (from generics or otherwise). And while Xarelto's revenue moved in the right direction in the first quarter, the U.S. Food and Drug Administration recently approved the first generic of this medicine. There will be more Medicare price negotiations, and nobody knows yet which drugs they will target. But in the long run, Johnson & Johnson should be able to handle this problem. It can avoid price negotiations by decreasing its exposure to therapies for which Medicare -- a program for the elderly -- spends the most. And that's just one possibility, which the company's deep pipeline and ability to generate consistent cash flow should allow it to do. J&J has been around for more than 100 years; it's had to deal with changes in regulatory regimes before. Although the company's revenue growth has been slow, its recent decision to spin off its consumer health unit to focus on its biopharma and med-tech segments was partly to address that problem. Expect stronger revenue growth as it focuses more on higher-growth opportunities within its two remaining units. Lastly, Johnson & Johnson has a higher credit rating than the U.S. government. Even the barrage of lawsuits has not changed that, which is strong evidence that it has the financial capabilities to handle these challenges. A previous judge shot down J&J's attempt to settle these lawsuits via a bankruptcy maneuver for one of its subsidiaries, partly because the company's robust financial position does not put it at risk of insolvency despite the lawsuits it faces. What about the dividend? Johnson & Johnson is a Dividend King with 62 years of consecutive payout increases under its belt. The healthcare leader should continue hiking its dividend, which now yields a market-beating 3.4% yield, for a long time. Before you buy stock in Johnson & Johnson, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Johnson & Johnson wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $639,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $804,688!* Now, it's worth noting Stock Advisor's total average return is 957% — a market-crushing outperformance compared to 167% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Prosper Junior Bakiny has positions in Johnson & Johnson. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy. 1 Top Dividend Stock to Buy for a Lifetime of Passive Income was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
14-04-2025
- Business
- Yahoo
Buy, Sell or Hold J&J Stock? Key Tips Ahead of Q1 Earnings
Johnson & Johnson JNJ will begin the earnings season for the drug & biotech sector when it reports its first-quarter 2025 results on April 15. The Zacks Consensus Estimate for first-quarter sales and earnings is pegged at $21.66 billion and $2.57 per share, respectively. The Zacks Consensus Estimate for J&J's earnings has declined from $10.58 per share to $10.57 per share for 2025, while that for 2026 has declined from $11.07 per share to $11.02 per share over the past 60 days. Earnings Calendar Image Source: Zacks Investment Research The healthcare bellwether's performance has been pretty impressive, with the company exceeding earnings expectations in each of the trailing four quarters. It delivered a four-quarter earnings surprise of 4.43%, on average. In the last reported quarter, the company delivered an earnings surprise of 2.0%. Image Source: Zacks Investment Research J&J has an Earnings ESPof -2.53% and a Zacks Rank #3 (Hold). Per our proven model, companies with the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 have a good chance of delivering an earnings beat. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter. Sales in J&J's Innovative Medicines segment are expected to have been driven by higher sales of key products such as Darzalex, Tremfya and Erleada due to strong market growth and share gains. For Darzalex, the consensus mark is pegged at $3.13 billion, while our model estimates sales of $3.15 billion. The Zacks Consensus Estimate for Tremfya is $939.0 million, while our model estimate is $989.7 million. The Zacks Consensus Estimate for Erleada sales is $817.0 million, while our model projects sales to be $855.3 million. Other products like Invega Sustenna, Uptravi and Spravato are likely to show growth. The rapid adoption of new drugs like Carvykti, Tecvayli and Talvey are likely to have contributed to top-line growth. Sales of the key drug Stelara are likely to have declined due to the impact of current and potential biosimilar competition. A biosimilar version of Stelara was launched in certain European markets for some indications in July 2024. Several biosimilar versions of Stelara are expected to be launched in the United States in 2025. Amgen AMGN launched the first Stelara biosimilar, Wezlana, in January 2025. Stelara biosimilar competition is expected to accelerate throughout 2025 as the number of biosimilar entrants increases. The Zacks Consensus Estimate for Stelara sales is pegged at $1.64 billion, while our model projects sales of $1.66 billion. Imbruvica sales are likely to have declined due to rising competitive pressure in the United States due to new oral competition. The Zacks Consensus Estimate for Imbruvica is $678.0 million, while our model indicates sales to be $703.0 million. Sales of Xarelto and Simponi/Simponi Aria improved in the fourth quarter of 2024. It remains to be seen if the positive trend continued in the first quarter of 2025. Generic/biosimilar competition for drugs like Zytiga and Remicade is likely to have hurt the top line. The negative impact of the Part D redesign and a heavier impact from Fx are expected to have weighed on the Innovative Medicine segment in the first quarter. The Zacks Consensus Estimate for J&J's Innovative Medicine unit is $13.46 billion, while our estimate is $13.57 billion. The MedTech segment is expected to have faced difficult year-over-year comparisons in the first quarter. J&J's MedTech business has been facing continued headwinds in the Asia Pacific, specifically in China, where sales are expected to have been hurt by the impact of the volume-based procurement (VBP) program and the anti-corruption campaign. VBP is a government-driven cost containment effort in China. J&J does not expect any improvement in its business in the Asia Pacific region, specifically in China, in the first quarter or other quarters of 2025. Competitive pressure is likely to continue to hurt sales growth in some MedTech businesses like U.S. electrophysiology for PFA ablation catheter. However, new product uptake and commercial execution are expected to have boosted growth in other markets in the MedTech segment. The Zacks Consensus Estimate as well as our model estimate for J&J's MedTech segment is $8.14 billion. Nonetheless, a single quarter's results are not so important for long-term investors. Let us delve deeper to understand whether to buy, sell or hold J&J stock ahead of earnings. So far this year, J&J'sstock has risen 3.6% against a decrease of 4.8% for the industry. The stock has also outperformed the sector as well as the S&P 500, as seen in the chart below. Image Source: Zacks Investment Research From a valuation standpoint, J&J is reasonably valued. Going by the price/earnings ratio, the company's shares currently trade at 13.87 forward earnings, slightly lower than 14.81 for the industry. The stock is trading slightly below its five-year mean of 15.94. Image Source: Zacks Investment Research J&J's biggest strength is its diversified business model. With last year's complete separation of the Consumer Health segment into a newly listed company called Kenvue KVUE, J&J has now become a two-sector company focused on the Pharmaceutical and MedTech fields. J&J's Innovative Medicine unit is showing a growth trend. In 2025, J&J expects growth in the Innovative Medicine segment to be driven by its key products, such as Darzalex, Tremfya, Spravato and Erleada, as well as new drugs like Carvykti, Tecvayli and Talvey, and new indications for Tremfya and Rybrevant. J&J is also making rapid progress with its pipeline and has been on an acquisition spree lately, which has strengthened its pipeline. Continuing the M&A momentum, in April, J&J closed its previously announced acquisition of Intra-Cellular Therapies for approximately $14.6 billion, strengthening its presence in the neurological and psychiatric drug market. However, the softness in the MedTech unit, the Stelara patent cliff and the potential impact of Part D redesign will be significant headwinds in 2025. It remains to be seen how the company navigates them. Stelara generated sales of $10.36 billion in 2024. The launch of generics is expected to significantly erode the drug's sales, hurting J&J's sales and profits in 2025. The legal battle surrounding its talc lawsuits has created a bearish sentiment around the stock. The lawsuits allege that its talc products contain asbestos, which caused many women to develop ovarian and some other cancers. Earlier this month, a bankruptcy court in Texas rejected J&J's proposed bankruptcy plan to settle its talc lawsuits. J&J will go back to the traditional tort system to fight the lawsuits individually with its bankruptcy strategy to settle the lawsuits failing for the third time. J&J has shown steady revenue and EPS growth for years. No matter how the first-quarter results play out, those who already own this company's shares may stay invested for some time as J&J looks poised for a better performance in 2025. You can see the complete list of today's Zacks #1 Rank stocks here. 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 Johnson & Johnson (JNJ) : Free Stock Analysis Report Amgen Inc. (AMGN) : Free Stock Analysis Report Kenvue Inc. (KVUE) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
