AbbVie's Q1 Surge: Post-Humira Growth Takes Center Stage

AbbVie (NYSE: ABBV) delivered a resounding first-quarter 2025 performance, defying the lingering shadow of its blockbuster drug Humira’s patent expiry. The biopharma giant reported adjusted diluted EPS of $2.46, handily beating estimates of $2.38, while revenue surged 9.8% operationally to $13.34 billion. The results underscore AbbVie’s successful pivot toward a new portfolio anchored by its immunology superstars Skyrizi and Rinvoq, which now collectively generate over $5 billion in quarterly sales—far outpacing the decline of Humira, which fell 50.6% to $1.12 billion.

The Immunology Engine: Fueling the Transition

The immunology portfolio remains the crown jewel, expanding 16.6% to $6.26 billion, led by:
- Skyrizi: $3.43 billion in sales (+70.5%), now the world’s fastest-growing psoriasis treatment.
- Rinvoq: $1.72 billion (+57.2%), with expanding use in rheumatoid arthritis and Crohn’s disease.

Together, these drugs are reshaping AbbVie’s revenue mix. While Humira’s decline continues—its U.S. patent expiry in 2023 triggered a flood of generics—the immunology duo’s momentum suggests the company is well-positioned to weather the loss.

Operational Strength and Strategic Priorities

The Q1 results also highlight management’s discipline:
- Adjusted EPS growth of 6.5% despite a $0.13 per share drag from IPR&D (in-process R&D) and milestones.
- R&D investment held steady at 15.4% of revenue, funding late-stage trials for therapies like tavapadon (Parkinson’s disease) and partnerships such as GUB014295 (obesity).

Pipeline Momentum and Long-Term Ambitions

AbbVie’s 2027 sales targets for Skyrizi and Rinvoq were raised to over $31 billion combined ($20 billion for Skyrizi, $11 billion for Rinvoq), reflecting confidence in their addressable markets. Recent wins include:
- Elahere’s EU approval for ovarian cancer, boosting oncology sales.
- GUB014295’s Phase 1 data, showing sustained weight loss in obese patients, positioning AbbVie to compete in a booming therapeutic space.

However, risks linger. The aesthetics segment, which includes Botox Cosmetic and Juvederm, declined 11.7%, signaling ongoing weakness in discretionary procedures. While AbbVie projects high single-digit CAGR growth in aesthetics through 2029, near-term recovery remains uncertain.

Valuation and Investment Considerations

AbbVie’s revised 2025 adjusted EPS guidance of $12.09–$12.29 reflects management’s optimism. At current levels, the stock trades at a 14.2x forward P/E, below its five-year average of 15.8x, suggesting some skepticism around near-term aesthetics headwinds or macroeconomic pressures on consumer-driven therapies.

Conclusion: A New Era of Growth

AbbVie’s Q1 results confirm its transition to a post-Humira powerhouse is on track. With Skyrizi and Rinvoq driving $5.1 billion in quarterly sales and a robust pipeline, the company is well-equipped to meet its $31 billion immunology sales target by 2027. While aesthetics struggles and pipeline risks (e.g., emraclidine’s failed schizophrenia trial) pose challenges, the operational discipline and strategic focus on high-growth therapeutic areas—immunology, oncology, and neuroscience—position AbbVie to sustain mid-single-digit revenue growth.

Investors should monitor two key metrics:
1. Skyrizi/Rinvoq growth trajectories (targeting $20 billion+ combined sales by 2027).
2. Aesthetics recovery (whether Botox and Juvederm can stabilize or rebound).

For now, the data supports AbbVie’s narrative: a pharmaceutical giant no longer shackled by Humira’s decline but propelled by its next-generation therapies. The stock’s 14.2x forward P/E and 2.3% dividend yield offer a compelling entry point for long-term investors willing to overlook near-term volatility.