Can Rinvoq and Skyrizi Sales Drive Another Strong Quarter for AbbVie?

AbbVie ABBV remains a dominant force in the immunology space, powered by the continued uptake of its two blockbuster medications, Skyrizi and Rinvoq. The robust demand for both drugs has helped the company return to top-line growth despite the U.S. loss of exclusivity for its flagship drug, Humira, over two years ago. With the company set to report third-quarter results on Oct. 31, investors will be closely watching whether this momentum continues.

Both Skyrizi and Rinvoq are approved across Humira's major indications and a distinct new indication, atopic dermatitis. AbbVie is seeing strong performance of these two drugs across all approved indications, especially in the popular inflammatory bowel disease (IBD) space, which includes two conditions — ulcerative colitis (UC) and Crohn’s disease (CD).

Strong immunology market growth, market share gains and momentum from new indications, such as the recent launch of Skyrizi in UC and Rinvoq in giant cell arteritis (GCA) indication, are expected to drive performance in Q3. Our model estimates for Skyrizi and Rinvoq sales are pegged at $4.54 billion and $2.16 billion, respectively, for the to-be-reported quarter.

Beyond immunology, AbbVie has been expanding its presence in other therapeutic areas, notably neuroscience and oncology. Growth in its neuroscience franchise has been supported by increasing uptake of its migraine drugs, Ubrelvy and Qulipta. In recent years, the company has successfully expanded its oncology franchise beyond hematologic cancers into solid tumors, led by newer drugs such as Elahere and Emrelis.

ABBV’s Peers in the Immunology Space

The targeted market is highly competitive. A key player in this field is Johnson & Johnson JNJ, which already markets two blockbuster drugs — Stelara and Tremfya. Both of these J&J medications are approved for multiple immunology indications, including UC and CD. Since Stelara lost U.S. patent exclusivity earlier this year, J&J has shifted its focus to Tremfya to maintain its market position.

Another pharma giant expanding its presence in immunology is Eli Lilly LLY, following the FDA approval of Omvoh for the UC indication in late 2023. Omvoh marked Lilly’s first immunology drug approved for a type of IBD in the United States, playing a key role in expanding its immunology portfolio. The Lilly drug received FDA approval for the CD indication in January.

ABBV’s Price Performance, Valuation and Estimates

Shares of AbbVie have outperformed the industry year to date, as seen in the chart below.

From a valuation standpoint, AbbVie is trading at a premium to the industry. Based on the price/earnings (P/E) ratio, the company’s shares currently trade at 16.72 times forward earnings, slightly higher than its industry’s average of 15.70. The stock is also trading above its five-year mean of 13.16.

The bottom-line estimate per share for 2025 has declined from $12.02 to $11.93, while those for 2026 have increased from $14.32 to $14.42 over the past 30 days.

AbbVie currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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