GSK Free Cash Flow Forecast for 2023 - 2025 - 2030. You should do your own research and never invest money you cannot afford to lose. This has been in spite of a string of macroeconomic headwinds such as the ongoing Russia-Ukraine war that has contributed to record high inflation in the US and the UK, and the companys psoriatic arthritis drug Adalimumab, known as Humira, facing biosimilar rivals in the US from 2023. The stock projection varied from the low price target of $135 to the high of $200. The acquisition expanded AbbVies neuroscience portfolio, adding first-in-class modulators of the synaptic vesicle protein 2A, including lead molecule SDI-118 currently in Phase 1b studies. In the last four years, Johnson & Johnson's Free Cash Flow has fallen from $18.53B to $17.00B - a 8.28% decrease. Free Stock Analysis Report: See The True Value of Any Stock, The Best Strategy For Your Small Trading Account. For the next nine years, the forecast is for Revenue to grow by 3.57%. Retail sales were up but so was inflation which meant more volatility for stocks. Without the additional patents - >130 in total - Humira would have lost its market exclusivity in 2016, but having eventually lost protection in Europe, which has resulted in a sales decline from $6.3bn in 2018, to ~$2.7bn in 2022, Humira will finally face generic competition in the US from the beginning of this year. Data from two Phase 3 induction studies and one maintenance study supported the approval. (6.33% Upside) Based on 15 Wall Street analysts offering 12 month price targets for AbbVie in the last 3 months. This figure could eventually end up substantially larger - according to Gonzalez: We've begun to see some very exciting data from several solid tumor programs, including our anti-GARP antibody ABBV-151, and our PTK7 ADC, ABBV-647. AbbVie is led by CEO and Chairman Rick Gonzalez - likely the only Pharma CEO who lacks a college degree - who has successfully defended Humira from generic drug competition by adopting a controversial strategy of continually applying for new patents related to minor changes in manufacturing methods or administration, often referred to as a "patent thicket". AbbVie's success - as its shareholders will doubtless be aware - stems from the runaway success of its immunology drug Humira, which is indicated for a range of autoimmune conditions, including Rheumatoid Arthritis, Psoriatic Arthritis, Psoriasis, Crohn's Disease, Ulcerative Colitis, Hidradenitis Suppurativa and Ankylosing spondylitis. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. AbbVie says it will pay down debt of $4bn in 2023, which will "bring cumulative debt pay down ~$34bn", but the company is heavily reliant on maintaining an investment grade rating. If youre new to trading, then youve probably heard the wrong thing about optionsthat theyre risky, unpredictable, or difficult. I am not receiving compensation for it (other than from Seeking Alpha). As such I have downgraded my own growth expectations in the forecasting table above, reducing annual growth from 7.5%, to just 2.5%, after forecasting for $5bn revenues in FY22 - down 7.5% year-on-year. In February, a Phase 3 induction study saw positive top-line results. The dividend payout ratio is 89.56%. Receive regular, detailed analysis focused on biotech and healthcare stocks. Popular online brokerages with access to the U.S. stock market include WeBull, Vanguard Brokerage Services, TD Ameritrade, E*TRADE, Robinhood, Fidelity, and Charles Schwab. On average, analysts forecast that ABBV's EPS will be $11.80 for 2023, with the lowest EPS . AbbVie's stock is owned by many different institutional and retail investors. With a 5-year investment, the revenue is expected to be around +88.28%. Migraine therapy Ubrelvy is a future blockbuster, Gonzalez believes, as is Qulipta, in the same indication. AbbVie has fought off patent challenges against Humira for years longer than expected, and despite losing exclusivity in Europe in 2020, a series of price hikes and market dominance in the US in indications such as Rheumatoid Arthritis ("RA"), Psoriatic Arthritis ("PsA"), Crohn's Disease ("CD"), and Ulcerative Colitis ("UC") - have enabled the drug's sales revenues to keep growing. AbbVie stock was up after posting a mixed fourth-quarter earnings report, but with the company's patent expiring on Humira, the stock is a hold, February 24, 2023|americanbankingnews.com, February 23, 2023|americanbankingnews.com. The firm earned $15.12 billion during the quarter, compared to the consensus estimate of $15.30 billion. Neuroscience is one of AbbVie's most intriguing divisions and perhaps the hardest to model. psoriatic arthritis at a lower dose, again with a comparable safety profile, and has also won approval in a field where Humira has not, namely Atopic Dermatitis. Abbvie has a strong pipeline of projects ahead, and has recently received US FDA approval of its ulcerative colitis drug Rinvoq. Refer to our. The company reported its first revenue for Botox competitor Daxxify. If you like what you have just read and want to receive at least 4 exclusive stock tips every week focused on Pharma, Biotech and Healthcare, then join me at my marketplace channel, Haggerston BioHealth. According to 23 major analysts, AbbVie's Fair Value will fall by 5.43% in the next year, reaching $122.98. As such, forecasting stock prices is more of an art than a science. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities. With Skyrizi and Rinviq - two assets developed in-house - performing so well, however, perhaps we should give management the benefit of the doubt. The company's lead asset - all-time best selling immunology drug Humira - finally loses patent protection this year and sales will enter a period of terminal decline. And never invest or trade money you cannot afford to lose. Projections are based on making fundamental and technical studies of the ABBV stock price performance. Gene therapies have been a long time coming, having first been popularized in the early noughties. AbbVie CEO Gonzalez told the audience at the JPM Healthcare conference that: We now have a little over 90% access for next year for Humira at parity. Thus, it is likely that ABBV will continue to find support on the dips in this type of market environment.. As well as the stock price gains AbbVie has always paid a handsome dividend - which has increased by 270% since the Pharma's inception, currently paying $1.48 per quarter, for a current yield of 4% - the highest in the large Pharmaceutical sector. AbbVie Aesthetics / Neurology revenues forecasts to 2030 (my table and assumptions) . AbbVie has 5 focus areas for its research and products. When I began this post it was in my mind to give AbbVie stock a "Hold" rating owing to an underwhelming - on some levels - set of Q2'22 earnings, some concerns around high revenue generating products such as Imbruvica, Juvederm, and Restasis, the disappearance of the Women's Health division, the imminent LOE for Humira and the high levels of debt. According to CompaniesMarketCap, the biopharmas market capitalisation stood at $272.38bn, making it the worlds 30th most valuable company. AbbVie made the bold decision to take on a heavy debt load and bid for Allergan, with the deal being completed in 2020. It now expects full-year profit in the range of $13.92-$14.12 a share. I wrote this article myself, and it expresses my own opinions. Johnson & Johnson is rushing toward a patent cliff but a new shelf offering registration suggests itis gearing up for acquisitions. The lowest target is $136.35 and the highest is $210. We're currently running a sale at my private investing ideas service, Haggerston BioHealth, where members get access to portfolios, market alerts, real-time chat, and more. After creating the income statement I prepare the discounted cash flow/EBITDA multiple analysis. Read the conference call transcript. Only 0.08% of the stock of AbbVie is held by insiders. I haven't included Epcoritamab sales in my forecasts this time, but I hope to adjust the table before Q3'22 results are announced. That is substantially higher than the 12% CAGR achieved between 2018 - 2022, although that period includes the additional revenues from Allergan. Moreover, with surging demand, rising investments in research and development, and increasing e-pharmacy channels, the industry is well-positioned for significant growth New research suggests Depakote ingredient could have a new clinical function. Based on earnings estimates, AbbVie will have a dividend payout ratio of 54.11% next year. Morningstar: 2019 Morningstar, Inc. All Rights Reserved. All rights reserved. High institutional ownership can be a signal of strong market trust in this company. The consensus rating was moderate buy based on 16 analysts ratings, with 10 recommending buy, five hold and sell. Abbvie Inc quote is equal to 152.710 USD at 2023-02-27. Should I buy or sell AbbVie stock right now? I had felt this could be an issue for Skyrizi and Rinvoq, given it is rare for a drug to be as dominant as Humira was, but although the level of competition is fierce, both drugs are more than meeting expectations, and with the entire auto-immune market worth as much as $45 - $50bn, it does seem possible that Skyrizi and Rinvoq could one day generate >$20bn revenues between them, as management hopes. AbbVie's post-Humira LOE plans are not riskless, and its targets are ambitious, but nevertheless I see no harm in picking up shares in the Pharma at the current price, accepting a generous 4% dividend, and likely benefitting from share repurchases and a steadily growing share price until 2030. That makes companies like AbbVie generally very attractive to investors although it should be noted that AbbVie carries a very high level of debt which stood at >$60bn as of Q322 - more or less the amount the company paid to acquire Allergan. That reflects uncertainty about what the future holds for AbbVie. Move your mouse over a quarter or year to see how estimates have changed over time. The division delivered >$1.65bn in sales in Q2'22, up >15% year-on-year, and with Vraylar, Ubrelvy and possibly Qulipta all earmarked for blockbuster sales - $4bn in the case of Vraylar - my forecasting suggests this division could double in size by 2030, from ~$6.6bn revenues generated in FY22, to >$13.5bn by 2030. View the best growth stocks for 2023 here. For full year 2022, Abbvie predicted the adjusted diluted EPS guidance range at $14.00 to $14.20 and $13.92 to $14.12. Receive regular, detailed analysis focused on biotech and healthcare stocks. In the U.S. dermatology segment, where approximately 30% of patients exhibit both skin and joint involvement, Skyrizi is already achieving an in-play patient share of nearly 20%. The ex-dividend date of this dividend is Thursday, April 13th. If you rely on the information on this page then you do so entirely on your own risk. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. Based on our forecasts, a long-term increase is expected, the "ABBV" stock price prognosis for 2028-02-23 is 287.522 USD.
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