AbbVie's New Immunology Drugs Drive 2025 Profit Above Estimates

AbbVie Inc. (ABBV) has forecasted its 2025 profit to be above Wall Street estimates, driven by the strong performance of its newer immunology drugs, Skyrizi and Rinvoq. The company's shares rose 3.5% on Monday, following the announcement of its full-year and fourth-quarter 2024 financial results. Goldman Sachs raised its price forecast for AbbVie from $205 to $208, reflecting confidence in the upside potential from key immunology growth drivers.



Goldman Sachs analyst Chris Shibutani has increased Skyrizi forecasts by 1.4% and 3.1% for 2025 and 2026, respectively, driven by strong performance and potential in treating inflammatory bowel diseases. Rinvoq forecasts have also seen a slight boost of 0.4% for both years. The analyst is closely watching Phase 3 trial results for additional uses, such as alopecia areata and vitiligo, expected in 2025 to guide long-term growth projections.



AbbVie's strategic pricing and market share maintenance have helped offset the impact of competition from biosimilars for its flagship drug, Humira. The company has reduced Humira's net price to make it more affordable for pharmacy benefit managers (PBMs), maintaining their interest in including Humira in their preferred drug lists. This strategy, combined with the growth of newer immunology drugs, has allowed AbbVie to maintain Humira's market share with PBMs over the past year.

AbbVie's acquisitions, particularly in neuroscience, have also contributed to its pipeline and long-term growth prospects. The company's $8.7 billion deal for Cerevel Therapeutics has bolstered its pipeline of drugs in this area, allowing AbbVie to explore new treatment options for patients with neurological disorders. By investing in neuroscience, AbbVie is positioning itself to tap into a growing market with significant unmet needs, which could drive long-term growth for the company.

In conclusion, AbbVie's forecasted 2025 profit above estimates is driven by the strong performance of its newer immunology drugs, Skyrizi and Rinvoq. The company's strategic pricing, market share maintenance, and acquisitions in neuroscience have all contributed to its pipeline and long-term growth prospects. Investors should remain optimistic about AbbVie's financial outlook, as the company continues to execute on its growth strategies.