Update shared on12 Sep 2025
Fair value Increased 0.44%AbbVie's price target was raised to $217.45 as analysts cited the value impact of extended Rinvoq exclusivity from litigation settlement, strong Q2 results, and positive pipeline developments, outweighing near-term Aesthetics headwinds.
Analyst Commentary
- Bullish analysts cite the settlement of litigation regarding generic Rinvoq, extending market exclusivity in the U.S. to 2037 and reducing threats from earlier-than-anticipated generic competition.
- The Rinvoq settlement is viewed as adding $11-$24 per share in value, providing a longer runway for continued sales and alleviating investor concerns over near-term patent cliffs.
- The proposed acquisition of Bretisilocin is considered a strong addition to AbbVie's Neuro pipeline, offering synergies within the franchise and leveraging positive Phase 2a data in Major Depressive Disorder.
- AbbVie reported a strong Q2 with both revenue and earnings exceeding expectations, prompting a second upward revision to 2025 guidance and supporting increased price targets.
- While the Aesthetics business remains under pressure from ongoing macroeconomic headwinds, management remains cautiously optimistic about its long-term recovery.
What's in the News
- AbbVie announced the proposed acquisition of Bretisilocin from Gilgamesh Pharmaceuticals for up to $1.2B, enhancing its Neuro pipeline with a strong asset in Major Depressive Disorder (Raymond James).
- Bretisilocin, currently in Phase 2 with positive efficacy and safety data, is expected to complement AbbVie's existing Neuro franchise and capitalize on synergies in the MDD market (Raymond James).
- Raymond James views the deal as unsurprising due to prior collaboration and previous speculation, maintaining an Outperform rating on AbbVie (Raymond James).
- AbbVie is reportedly in discussions to acquire Gilgamesh Pharmaceuticals for around $1B, though negotiations may still be delayed or fall apart (Bloomberg).
- The talks for Gilgamesh's acquisition highlight AbbVie's ongoing expansion in neuropsychiatry and commitment to pipeline diversification (Bloomberg).
Valuation Changes
Summary of Valuation Changes for AbbVie
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $216.48 to $217.45.
- The Consensus Revenue Growth forecasts for AbbVie remained effectively unchanged, moving only marginally from 7.7% per annum to 7.8% per annum.
- The Future P/E for AbbVie remained effectively unchanged, moving only marginally from 22.48x to 22.54x.
Disclaimer
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