AbbVie Lifts Long-Term Outlook For New Immunology Drugs, Even As Q4 Revenue and Profit Fall
Portfolio Pulse from Vandana Singh
AbbVie Inc (NYSE:ABBV) reported a Q4 adjusted EPS of $2.79, down 22.5% Y/Y but above consensus. Q4 revenues were $14.301 billion, down 5.4% Y/Y, also beating expectations. The company saw mixed results in its drug portfolios, with significant declines in Humira sales but strong growth in Skyrizi and Rinvoq sales. AbbVie has made strategic acquisitions of ImmunoGen Inc (NASDAQ:IMGN) and Cerevel Therapeutics Holdings Inc (NASDAQ:CERE) to bolster its oncology and neuroscience portfolios, respectively. The company raised its long-term revenue outlook for several drugs and expects a high single-digit annual revenue growth rate through 2029. ABBV shares rose 1.44% to $170.01.
February 02, 2024 | 4:12 pm
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POSITIVE IMPACT
AbbVie reported higher than expected Q4 earnings and revenue, with significant growth in Skyrizi and Rinvoq sales. The company also made strategic acquisitions and raised its long-term revenue outlook, positively impacting investor sentiment.
The positive earnings report, strategic acquisitions, and raised long-term revenue outlook are likely to boost investor confidence in AbbVie, leading to a short-term positive impact on its stock price.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Cerevel Therapeutics Holdings Inc was acquired by AbbVie for approximately $8.7 billion to enhance its neuroscience portfolio. This acquisition could positively impact Cerevel's valuation and future prospects.
Being acquired by AbbVie could provide Cerevel with increased resources and a stronger platform for growth, likely resulting in a positive short-term impact on its stock price.
CONFIDENCE 85
IMPORTANCE 85
RELEVANCE 80
POSITIVE IMPACT
ImmunoGen Inc was acquired by AbbVie for approximately $10.1 billion, aiming to enhance AbbVie's oncology portfolio. This strategic move could potentially increase ImmunoGen's value.
The acquisition by a larger pharmaceutical company like AbbVie not only validates ImmunoGen's value but also provides it with more resources for development, potentially leading to a positive short-term impact on its stock.
CONFIDENCE 85
IMPORTANCE 85
RELEVANCE 80