Expanding Immunology And Neuroscience Will Reshape Global Healthcare

AbbVie’s consensus price target has been raised from $217.45 to $227.22, as analysts highlight the value added by the extended Rinvoq patent runway, top- and bottom-line beats, pipeline expansion through the Bretisilocin acquisition, and underappreciated royalty streams.

Analyst Commentary

• Bullish analysts cite a substantial extension of Rinvoq’s U.S. patent runway through favorable settlement, delaying generic entry until 2037—4 years beyond prior expectations—and modeling this as adding $11-$24 per share in value.
• Upward price targets reflect top- and bottom-line beats in recent quarters and raised 2025 guidance, led by momentum in key growth drivers such as Skyrizi and the neuroscience portfolio, despite ongoing macro headwinds for the aesthetics business.
• The proposed acquisition of Bretisilocin, an innovative neuropsychiatric therapy with strong Phase 2a data for Major Depressive Disorder, is seen as a meaningful addition to AbbVie’s pipeline, enhancing its Neuro franchise and broadening future growth prospects.
• Bullish analysts highlight underappreciated royalty revenue potential from partnered assets like Epkinly in aggressive and indolent lymphomas, which could drive multi-billion dollar upside not currently reflected in consensus estimates.
• Recent hidradenitis suppurativa trial data for AbbVie’s pipeline assets validates the therapeutic approach but also delineates efficacy limitations, influencing sentiment on related competitors while reinforcing AbbVie’s scientific and commercial positioning.

What's in the News

• AbbVie announced the proposed acquisition of Bretisilocin from Gilgamesh Pharmaceuticals in a deal valued up to $1.2B, to bolster its Neuro pipeline (Raymond James).
• Bretisilocin, Gilgamesh’s lead asset, is in Phase 2 for Major Depressive Disorder, demonstrating a novel mechanism of action with compelling efficacy and safety data in recent Phase 2a trials (Raymond James).
• The acquisition is expected to create synergies within AbbVie’s Neuro franchise, particularly in the large MDD market, as highlighted by Raymond James, which maintains its Outperform rating on AbbVie (Raymond James).
• The acquisition was not a surprise, as earlier reports and an existing collaboration between AbbVie and Gilgamesh were already in place for preclinical psychiatric assets (Raymond James).
• Bloomberg reports AbbVie is in ongoing discussions to acquire Gilgamesh Pharmaceuticals for about $1B, but notes the deal has not yet been finalized and discussions could still fall through (Bloomberg).

Valuation Changes

Summary of Valuation Changes for AbbVie

• The Consensus Analyst Price Target has risen slightly from $217.45 to $227.22.
• The Net Profit Margin for AbbVie has risen slightly from 28.55% to 29.48%.
• The Consensus Revenue Growth forecasts for AbbVie has risen slightly from 7.8% per annum to 7.9% per annum.