Here's What We Expect From AbbVie's Immunology Segment in Q4

AbbVie ABBV generates a substantial portion of its revenues from its immunology franchise, driven by the encouraging uptake of its two blockbuster drugs — 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, three years ago. Investors will be most keen to know the sales numbers of these two drugs when the company reports fourth-quarter and full-year 2025 results on Feb. 4, 2025.

AbbVie successfully launched Skyrizi and Rinvoq across Humira's major indications, and a distinct new indication, atopic dermatitis. Both drugs have delivered strong performance across approved indications, especially in the popular inflammatory bowel disease (IBD) space, which includes ulcerative colitis (UC) and Crohn’s disease (CD).

Our model estimates for Skyrizi and Rinvoq sales are pegged at $4.87 billion and $2.33 billion, respectively, for the to-be-reported quarter.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 Q4 performance.

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 oral migraine therapies, Ubrelvy and Qulipta. In oncology, the company has successfully broadened its portfolio beyond hematologic cancers into solid tumors, led by newer assets such as Elahere and Emrelis.

ABBV’s Competition 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 last 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 LLY’s first immunology drug approved for a type of IBD in the United States, playing a key role in expanding its immunology portfolio. The Eli Lilly drug received FDA approval for the CD indication last year.

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 discount to the industry. Based on the price/earnings (P/E) ratio, the company’s shares currently trade at 15.50 times forward earnings, lower than its industry’s average of 17.91. The stock is also trading above its five-year mean of 13.55.

The bottom-line estimate per share for 2025 has declined from $10.73 to $10.64, while those for 2026 have increased from $14.41 to $14.42 over the past 60 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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