How Will Skyrizi and Rinvoq Sales Aid AbbVie's Upcoming Q2 Results?

AbbVie ABBV has successfully navigated the loss of exclusivity (LOE) for its flagship drug, Humira, by launching two newer immunology medicines, Skyrizi and Rinvoq. Investors will be most keen to know the sales numbers of these two drugs when the company reports second-quarter results on July 31.

AbbVie successfully launched Skyrizi and Rinvoq across Humira's major indications and a distinct new indication, atopic dermatitis. Both drugs showed strong performance 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). In April, AbbVie secured label expansion for Rinvoq across both the United States and Europe in the giant cell arteritis (GCA) indication, which is also likely to have contributed to sales growth during the second quarter.

Driven by the robust performance of these two drugs, AbbVie expects to return to growth in 2025, despite it just being the second year following the U.S. Humira LOE. Our model estimates for Skyrizi and Rinvoq sales are pegged at $4 billion and $2 billion, respectively, for the to-be-reported quarter.

In addition to immunology, AbbVie has been expanding its presence in oncology and neuroscience. In recent years, ABBV has added Epkinly, Elahere and most recently, Emrelis, bringing its total oncology therapies to five. Growth in its neuroscience segment has also been supported by increasing uptake of its migraine drugs, Ubrelvy and Qulipta.

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 not very cheap. Based on the price/earnings (P/E) ratio, the company’s shares currently trade at 14.21 times forward earnings, a tad lower than its industry’s average of 15.01. The stock is cheaper than some other large drugmakers, such as Eli Lilly and Novo Nordisk, but is priced much higher than most other large drugmakers. The stock is also trading above its five-year mean of 12.48.

The bottom-line estimate for 2025 has remained consistent at $12.28, while that for 2026 has increased from $14.05 to $14.06 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.

Want 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

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

Zacks Investment Research