AbbVie Inc

ABBV: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$728.00	Wqyzd	Jzxgkgth

AbbVie Earnings: Strong Next-Generation Immunology Drugs Sales Support Fair Value Estimate Increase

Damien Conover

Jul 25, 2024

We are increasing our AbbVie fair value estimate to $176 from $168 following solid second-quarter earnings that exceeded our expectations. Importantly, AbbVie's next-generation immunology drugs Skyrizi and Rinvoq are generating enough growth to offset biosimilar pressure to the firm's older immunology drug Humira. This trend increases our conviction in AbbVie's wide moat. With limited other patent losses, AbbVie is poised to continue to post mid-single-digit sales growth over the next three years, at which time the Humira sales contribution will likely be less than 10%. We believe the firm has effectively navigated around the major Humira patent loss.

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