ABBV changes
Pick any two versions below to diff them.
- Price
- $293.30
- Discount category
- Far above intrinsic value
- Next earnings
- 2027-02-03
- Next earnings is estimate
- Yes
- Company name
- AbbVie
- Sector
- Pharmaceuticals
- About
- AbbVie is a US drug company. It sells medicines for immunology, neuroscience and cancer, and aesthetics products through Allergan Aesthetics. Its largest medicines are Skyrizi and Rinvoq for psoriasis, arthritis and bowel diseases. Other products include Humira, Vraylar, Botox, Ubrelvy, Qulipta, Vyalev, Venclexta, Imbruvica, Elahere and the dermal filler Juvederm. In 2025, net revenues were $61.2 billion. In Q3 2026, net revenues were $17.4 billion: immunology gave $9.2 billion, neuroscience $3.4 billion, oncology $1.7 billion and aesthetics $1.2 billion. Skyrizi and Rinvoq together gave about 49% of Q3 2026 revenue. The US composition of matter patents on Skyrizi and Rinvoq are expected to expire in 2033.
- Thesis
- AbbVie trades at a premium because investors pay for fast growth after the loss of Humira exclusivity. Skyrizi grew 22.7% and Rinvoq grew 23.9% in Q3 2026, neuroscience grew 19.4%, and total net revenues grew 10.3% even though Humira fell 31.2%. Investors also pay for a dividend that rises every year: AbbVie raised it 5.2% for 2027. For the premium to be earned, four things must be true. Skyrizi and Rinvoq must keep growing about 20% a year, because they give about half of revenue. The new medicines must add growth: Vyalev, the Parkinson's tablet Juvmo, the myeloma drug etentamig, which is under FDA review, and lutikizumab and the Apogee drugs in immunology. The Botox Medicare price, set to start in 2028, must stay blocked: a federal court vacated the selection of Botox on October 29, 2026, but the government can appeal. AbbVie must lower its debt of about $80.9 billion after it borrowed $18.0 billion in 2026. The full-year 2026 report and the 2027 guidance in early February 2027 are the next test. The premium can shrink if Skyrizi and Rinvoq slow down, if the court ruling on Botox is reversed, or if large purchases add more debt.
- Risks
- AbbVie depends on two medicines. Skyrizi and Rinvoq gave about 49% of Q3 2026 revenue. Their US composition of matter patents are expected to expire in 2033, and generic Rinvoq tablets are not expected in the US before April 2037 under patent settlements. New competitors in psoriasis and bowel diseases, such as oral drugs, can slow their growth. US drug price policy can lower prices. CMS selected Botox for Medicare price negotiation from 2028. A court vacated this selection on October 29, 2026, but the government can appeal. The voluntary pricing agreement of January 2026 also lowers some prices. AbbVie has high debt from its purchases. Debt was about $80.9 billion at September 30, 2026, after $18.0 billion of new notes in 2026. More large purchases can delay debt reduction. Aesthetics revenue is weak. It fell 1.4% in Q3 2026, and Juvederm fell 11.9%, because consumers spend less on elective treatments. Health plans sue AbbVie. A class action filed in January 2025 says that AbbVie's Humira rebates blocked biosimilar competition.
- Balance sheet
- Cash: $10.8B Debt: $80.9B Net debt: $70.1B Undrawn credit line: $8.0B Debt due within 12 months: $8.7B Last debt due: 2066 Ratings: Moody's A2 (stable outlook), S&P A- (positive outlook) AbbVie funds itself mainly with senior notes. At September 30, 2026, the current portion of long-term debt was $8.7 billion and long-term debt was $72.2 billion, for total debt of about $80.9 billion, up from $67.5 billion at December 31, 2025. AbbVie issued $8.0 billion of notes in March 2026 and $10.0 billion in August 2026 for the Apogee purchase. The longest notes are due in 2066. It had no commercial paper or other short-term borrowings at September 30, 2026. Cash and equivalents were $10.8 billion. Two revolving credit facilities of $5.0 billion (to March 2028) and $3.0 billion (to January 2030) support the commercial paper program. In February 2026, Moody's raised AbbVie to A2 with a stable outlook, and in June 2026, S&P kept its A- rating and changed the outlook to positive. Cash from operations was $14.9 billion in the first nine months of 2026. As of 2026-09-30.
- Checkpoints
- Feb 3, 2027 (estimate): Full-year 2026 results and 2027 guidance. Pending. Watch: 2027 guidance with adjusted EPS growth near 10% or more and Skyrizi and Rinvoq growth near 20% passes; lower guidance or slower growth of these two medicines fails. 2027 (estimate): Botox ruling on appeal and etentamig decision. Pending. Watch: A court ruling that keeps Botox out of Medicare price negotiation and an FDA approval of etentamig pass; a reversal of the ruling or an FDA rejection fails.
- Recent events
- 2026-10-30: AbbVie reported Q3 2026 results. Net revenues grew 10.3% to $17.404 billion. Immunology grew 16.3%, with Skyrizi up 22.7% to $5.776 billion and Rinvoq up 23.9% to $2.706 billion, while Humira fell 31.2%. Neuroscience grew 19.4%, oncology grew 0.8% and aesthetics fell 1.4%. Adjusted diluted EPS was $3.82. AbbVie raised its 2026 adjusted EPS guidance to $13.95 to $13.99 and raised the quarterly dividend 5.2% to $1.82 per share from February 2027. 2026-10-30: In the Q3 2026 release, AbbVie said that the FDA approved Juvmo (tavapadon) for Parkinson's disease and Skyrizi for subcutaneous induction in Crohn's disease. It submitted a Biologics License Application for etentamig in multiple myeloma. Lutikizumab met its primary endpoint in a Phase 3 study in hidradenitis suppurativa. 2026-10-29: A US district court in Washington, D.C. vacated the selection of Botox for Medicare price negotiation and blocked CMS from publishing a maximum fair price for Botox. The government can appeal the ruling. 2026-09-03: AbbVie completed its purchase of Apogee Therapeutics for $135.11 per share in cash, a total equity value of about $10.9 billion. Apogee's lead drug, zumilokibart, is a long-acting antibody against IL-13 for atopic dermatitis. 2026-08-18: AbbVie issued $10.0 billion of senior notes, with maturities from 2028 to 2066, to pay for the Apogee purchase. 2026-07-31: AbbVie reported Q2 2026 results. Net revenues grew 10.2% to $16.990 billion, and adjusted diluted EPS grew 22.9% to $3.65. It included the dilution from Apogee in its 2026 guidance. 2026-06-22: AbbVie agreed to buy Apogee Therapeutics to add drugs for atopic dermatitis and asthma to its immunology pipeline. 2026-03-04: AbbVie issued $8.0 billion of senior notes, with maturities from 2028 to 2066. In February 2026, Moody's raised AbbVie's senior unsecured rating to A2 with a stable outlook. 2026-02-04: AbbVie reported 2025 results. Net revenues grew 8.6% to $61.160 billion. Adjusted diluted EPS was $10.00, after a cost of $2.76 per share for acquired IPR&D and milestones.