ABBV's Acquisition Spree Continues: Buy, Sell or Hold the Stock?

Zacks12-16

AbbVie ABBV continued its acquisition spree with the announcement of a definitive agreement to acquire private biotech Nimble Therapeutics, which will add the latter’s lead pipeline candidate, an oral...

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The acquisition will strengthen AbbVie’s immunology pipeline.Nimble is also making oral peptide-based therapeutics for autoimmune diseases leveraging its proprietary peptide synthesis platform. To acquire Nimble, AbbVie will make a cash payment of$200 million. Nimble will also be entitled to some potential milestone payments.AbbVie has been on an acquisition spree in the past couple of years, which is strengthening its pipeline. It has signed several M&A deals in the immunology space, its core area, while also signing some early-stage deals in oncology and neuroscience areas.Boosted by its new product launches, AbbVie expects to return to robust mid-single-digit revenue growth in 2025 with a high single-digit CAGR through t","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU2087621335.USD":"ALLSPRING GLOBAL FACTOR ENHANCED EQUITY \"A\" (USD) ACC","SG9999014898.SGD":"United Global Quality Growth Fund Dis SGD","LU0096364046.USD":"CT (LUX) I AMERICAN \"DU\" (USD) ACC","IE00BGHQF631.EUR":"GUINNESS GLOBAL EQUITY INCOME \"C\" (EUR) ACC","LU1244550221.USD":"FRANKLIN GLOBAL MULTI-ASSET  INCOME \"A\" (USDHEDGED) INC (M)","IE0002141913.USD":"JANUS HENDERSON GLOBAL LIFE SCIENCES \"I2\" (USD) ACC","LU0061475181.USD":"THREADNEEDLE (LUX) AMERICAN \"AU\" (USD) ACC","IE00BK4W5M84.HKD":"HSBC GLOBAL FUNDS ICAV US EQUITY INDEX \"HC\" (HKD) ACC","LU0211327993.USD":"TEMPLETON GLOBAL EQUITY INCOME \"A\" (USD) ACC","NVO":"诺和诺德","SG9999001440.SGD":"United Global Dividend Equity Fund A SGD Dist","LU2361044865.SGD":"WELLINGTON US QUALITY GROWTH \"A\" (SGDHDG) ACC","LU0882574139.USD":"富达环球消费行业基金A ACC","LU0795875169.SGD":"JPMorgan Investment Funds - Global Income A (div) SGD-H","IBD":"Inspire Corporate Bond ETF","LU0211328371.USD":"TEMPLETON GLOBAL EQUITY INCOME \"A\" (MDIS) (USD)   INC","BK4581":"高盛持仓","SHAP.U":"Spree Acquisition Corp. I Ltd.","LU1496350502.SGD":"FRANKLIN DIVERSIFIED DYNAMIC \"A\" (SGDHDG) ACC","LU1732799900.SGD":"JPMorgan Investment Funds - Global Income A (irc) SGD-H","LLY":"礼来","SG9999013999.USD":"UOB UNITED GLOBAL HEALTHCARE FUND (USDHDG) INC","LU1974910355.USD":"Allianz Thematica Cl AMg DIS USD","LU0823416689.USD":"BNP PARIBAS HEALTH CARE INNOVATORS \"C\" (USD) ACC","LU1917777945.USD":"安联专题基金Cl AT Acc","LU2491050071.SGD":"WELLINGTON SUSTAINABLE OUTCOMES \"A\" (SGDHDG) ACC","LU0128525929.USD":"TEMPLETON GLOBAL \"A\" (USD) ACC","LU0170899867.USD":"EASTSPRING INVESTMENTS WORLD VALUE EQUITY  \"A\" (USD) ACC","IE00BDGV0183.EUR":"GUINNESS GLOBAL EQUITY INCOME \"C\" (EUR) INC","IE0009355771.USD":"骏利亨德森环球生命科技A Acc","GB00BDT5M118.USD":"天利环球扩展Alpha基金A Acc","LU2106854487.HKD":"ALLIANZ THEMATICA \"AMG\" (HKD) INC","LU1023059063.AUD":"BGF WORLD HEALTHSCIENCE \"A2\" (AUDHDG) ACC","ABBV":"艾伯维公司","LU0310800379.SGD":"FTIF - Templeton Global A Acc SGD","LU1712237335.SGD":"Natixis Mirova Global Sustainable Equity H-R-NPF/A SGD","SGXZ51526630.SGD":"大华环球创新基金A Acc SGD","SG9999011175.SGD":"Nikko AM Global Dividend Equity Dis SGD-H","LU2237443978.SGD":"Aberdeen Standard SICAV I - Global Dynamic Dividend A Acc SGD-H","IE00BSNM7G36.USD":"NEUBERGER BERMAN SYSTEMATIC GLOBAL SUSTAINABLE VALUE \"A\" (USD) ACC","LU1804176565.USD":"EASTSPRING INV GLOBAL GROWTH EQUITY \"A\" (USD) ACC","BK4139":"生物科技","LU1069344957.HKD":"AB SICAV I - AMERICAN GROWTH PORTFOLIO \"AD\" (HKD) INC","LU0965509010.AUD":"AB LOW VOLATILITY EQUITY PORTFOLIO \"AD\" (AUDHDG) INC","LU2361044949.HKD":"WELLINGTON US QUALITY GROWTH \"A\" (HKD) ACC","LU0203202063.USD":"AB SICAV I - ALL MARKET INCOME PORTFOLIO \"A2X\" (USD) ACC","LU1868836591.USD":"CT (LUX) I AMERICAN \"1U\"(USD) ACC","BK4007":"制药","SG9999015986.USD":"LIONGLOBAL DISRUPTIVE INNOVATION \"I\" (USD) ACC","SG9999015978.USD":"利安颠覆性创新基金A"},"translate_title":"ABBV的收购狂潮仍在继续：买入、卖出还是持有股票？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"SHAP.U":1,"ABBV":1,"IBD":1,"NVO":1,"LLY":1},"content_text":"AbbVie ABBV continued its acquisition spree with the announcement of a definitive agreement to acquire private biotech Nimble Therapeutics, which will add the latter’s lead pipeline candidate, an oral peptide IL23R inhibitor in preclinical development for psoriasis. The acquisition will strengthen AbbVie’s immunology pipeline.\nNimble is also making oral peptide-based therapeutics for autoimmune diseases leveraging its proprietary peptide synthesis platform. To acquire Nimble, AbbVie will make a cash payment of $200 million. Nimble will also be entitled to some potential milestone payments.\nAbbVie on an Acquisition Spree This Year\nAbbVie has been on an acquisition spree in the past couple of years, which is strengthening its pipeline. It has signed several M&A deals in the immunology space, its core area, while also signing some early-stage deals in oncology and neuroscience areas.\nIn 2024, it acquired smaller biotechs like Landos Biopharma and Celsius Therapeutics, which are making novel drugs for treating inflammatory bowel disease (IBD), which has become quite a popular space of late. It also signed a license agreement with China’s FutureGen to develop a next-generation anti-TL1A antibody for IBD. Among some recent deals, AbbVie acquired Aliada, a private biotech that makes neuroscience medicines, signed a collaboration and option-to-license agreement with EvolveImmune Therapeutics to develop next-generation cancer biotherapeutics and also expanded its existing neuroscience collaboration with Gedeon Richter.\nHowever, an investor cannot consider investing in ABBV’s stock just on the basis of its M&A success this year. Let’s understand the company’s strengths and weaknesses to better analyze how to play ABBV stock.\nABBV’s Successful New Drugs — Skyrizi and Rinvoq\nAbbVie lost patent protection for its blockbuster drug, Humira, in the United States in January 2023 and in the EU in 2018. Sales of Humira are declining due to loss of exclusivity and biosimilar erosion. However, AbbVie has successfully navigated Humira's loss of exclusivity by launching two other successful new immunology medicines, Skyrizi and Rinvoq, which are performing extremely well, bolstered by approvals in new indications.\nBoth these medicines are likely to support top-line growth in the next few years. Importantly, Skyrizi and Rinvoq have demonstrated compelling head-to-head data against several novel therapies in clinical studies, which have given them a competitive advantage. AbbVie expects the combined sales (risk-adjusted) of Skyrizi and Rinvoq to be more than $27 billion by 2027. These drugs have the potential to replace Humira sales.\nMeanwhile, new migraine drugs, Ubrelvy and Qulipta/Aquipta, represent a combined $3 billion-plus peak sales opportunity.\nBoosted by its new product launches, AbbVie expects to return to robust mid-single-digit revenue growth in 2025 with a high single-digit CAGR through the end of the decade.\nABBV Boasts an Attractive Pipeline\nAbbVie has several early/mid-stage pipeline candidates that have blockbuster potential. The company expects several regulatory submissions and approvals and key data readouts in the next 12 months.\nFor blood cancers and solid tumors, AbbVie has an exciting and diverse pipeline of promising new therapies like ABBV-383, a BCMA CD3 bispecific, being studied (in phase III) for relapsed/refractory multiple myeloma and Teliso-V, a promising c-Met ADC, which is under review in the United States for nonsquamous non-small cell lung cancer.\nIn November, AbbVie gained approval for Vyalev, a transformative therapy for treating advanced Parkinson’s disease. Studies are also ongoing to evaluate new indications for Botox and Juvederm Collection of fillers.\nABBV’s Slowing Aesthetics Sales & Humira Erosion\nSales of AbbVie’s blockbuster drug Humira are declining due to biosimilar erosion. Though, till the first half of 2024, the erosion in Humira’s sales was slower than expected, on the third-quarter conference call, the company said that it has now begun to see more erosion in Humira volume to other novel mechanisms (including Skyrizi and Rinvoq) than previously anticipated. The company reduced its U.S. sales expectations for Humira for 2024.\nAbbVie is seeing declining sales of Juvederm fillers in the United States and China. Slowing growth of U.S. facial injectables market and persistent economic headwinds impacting consumer spending in China are hurting sales of Juvederm due to its higher price point. Juvederm sales declined 14.6% in the first nine months of 2024.\nABBV Stock Price, Valuation and Estimate Revision\nAbbVie stock has gained 11.9% so far this year compared with an increase of 6.3% for the industry.\nABBV Stock Outperforms Industry\nImage Source: Zacks Investment Research\nFrom a valuation standpoint, AbbVie appears attractive relative to the industry. Going by the price/earnings ratio, the company’s shares currently trade at 14.22 forward earnings, lower than 16.46 for the industry. The stock is cheaper than that of some other large drugmakers like Eli Lilly LLY and Novo Nordisk NVO. However, the stock is trading above its 5-year mean of 11.40.\nABBV Stock Valuation\nImage Source: Zacks Investment Research\nThe Zacks Consensus Estimate for 2024 earnings has risen from $10.93 to $10.96 per share over the past 30 days. For 2025, earnings estimates have risen from $12.18 to $12.25 per share over the past 30 days.\nABBV Estimate Movement\nImage Source: Zacks Investment Research\nStay Invested in ABBV Stock\nAbbVie faces its share of headwinds like Humira biosimilar erosion, increasing competitive pressure on cancer drug Imbruvica and slow market growth trends for fillers in the United States and China. It also faced some key pipeline setbacks in 2024. In November 2024, AbbVie’s two registration-enabling phase II studies on emraclidine, its once-daily oral candidate for treating schizophrenia, failed to meet their primary endpoints. Emraclidine was added to AbbVie’s pipeline with the acquisition of Cerevel and was a key reason for AbbVie to buy the company, thus bringing into question the viability of the deal.\nHowever, AbbVie has faced its biggest challenge — Humira’s patent cliff — quite well and looks well-positioned for continued strong growth in the years ahead.  Strong sales performance of drugs like Rinvoq, Skyrizi, Venclexta and Vraylar, coupled with significant contributions from newer drugs like Ubrelvy, Elahere, Epkinly and Qulipta, should keep driving the company’s top line.\nAbbVie is generating double-digit sales growth from its ex-Humira platform, which covers more than 80% of its total sales, exceeding the company’s expectations.\nAbbVie’s reasonable valuation, rising estimates, a solid pipeline and the prospect of growth in sales and profits in 2025 are good enough reasons for those who own this Zacks Rank #3 (Hold) stock to stay invested. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nNovo Nordisk A/S (NVO) : Free Stock Analysis Report\nEli Lilly and Company (LLY) : Free Stock Analysis Report\nAbbVie Inc. (ABBV) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"corporation","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2492612120"}