AbbVie's Oncology Sales Growth Poised for Long-Term Growth Amidst Competition

AbbVie's oncology franchise has grown with new drugs like Epkinly, Emrelis, and Elahere, which generated combined revenues of $3.3 billion in H1 2025, up 4.2% YoY. The company's oncology segment is expected to experience a 3.5% CAGR over the next three years. AbbVie is also strengthening its portfolio with antibody-drug conjugates and late-stage development candidates like Temab-A and pivekimab sunirine.

AbbVie Inc. (ABBV) has shown significant growth in its oncology franchise, with new drugs like Epkinly, Emrelis, and Elahere contributing to a robust first half of 2025. The company's oncology segment generated combined revenues of $3.3 billion, representing a 4.2% year-over-year (YoY) increase [1]. This growth is expected to continue, with estimates suggesting a compound annual growth rate (CAGR) of 3.5% over the next three years.

AbbVie's oncology portfolio has been bolstered by several recent additions. Epkinly, approved for relapsed or refractory (r/r) third-line diffuse large B-cell lymphoma and third-line r/r follicular lymphoma, and Emrelis, approved for previously treated non-squamous non-small cell lung cancer with high c-Met expression, have delivered double-digit revenue growth in the first half of 2025 [1]. Elahere, acquired through the February 2024 purchase of Immunogen, is also contributing to the company's oncology sales.

The company is also strengthening its portfolio with antibody-drug conjugates (ADCs), a disruptive innovation in the pharmaceutical industry. AbbVie now has two ADCs in its commercial portfolio, Elahere and Emrelis, and two additional promising next-generation ADCs in late-stage development, Temab-A and pivekimab sunirine [1]. Additionally, etentamig/ABBV-383, a BCMA CD3 bispecific for relapsed/refractory multiple myeloma, is in development.

Despite the strong performance, AbbVie faces continued competitive pressure on Imbruvica, its key oncology drug. Other major players in the oncology space, such as AstraZeneca (AZN), Merck (MRK), Bristol-Myers, and Pfizer (PFE), are also performing strongly [1]. AstraZeneca's oncology sales rose 16% in the first half of 2025, driven by drugs like Tagrisso, Lynparza, Imfinzi, Calquence, and Enhertu [1]. Merck's Keytruda, which accounts for around 50% of its pharmaceutical sales, saw a 6.6% increase in sales to $15.1 billion [1]. Bristol-Myers' Opdivo sales rose 9% to $4.82 billion, and Pfizer's oncology revenues grew 9% in the first half of 2025 [1].

From a valuation standpoint, AbbVie is not cheap. Its shares currently trade at 15.54 forward earnings, higher than the industry average of 14.64, and above its five-year mean of 12.69 [1]. The Zacks Consensus Estimate for 2025 earnings has declined from $12.03 per share to $12.02, while that for 2026 has increased from $14.08 to $14.31 [1]. AbbVie currently carries a Zacks Rank #3 (Hold).

References:
[1] https://www.theglobeandmail.com/investing/markets/stocks/MRK/pressreleases/34330562/abbvs-improving-oncology-sales-poise-it-well-for-long-term-growth/
[2] https://www.nasdaq.com/articles/abbvs-improving-oncology-sales-poise-it-well-long-term-growth