Is RINVOQ's New FDA Approval Changing the Long-Term Growth Story for AbbVie (ABBV)?

• Earlier this month, AbbVie announced that the FDA approved an expanded indication for RINVOQ® (upadacitinib), allowing broader use in adult patients with moderately to severely active ulcerative colitis and Crohn's disease who cannot take tumor necrosis factor blockers, along with plans to present new data across multiple oncology assets at the ESMO Congress 2025.
• This regulatory milestone may enable RINVOQ to reach a larger patient population, underscoring AbbVie's focus on growth through both label expansion and new clinical innovations.
• We'll examine how the expanded RINVOQ indication could shape AbbVie's investment narrative and influence expectations for long-term portfolio growth.

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AbbVie Investment Narrative Recap

To be a shareholder in AbbVie, you need confidence in the company’s ability to grow beyond Humira’s loss of exclusivity, leaning on drugs like Skyrizi and Rinvoq to offset competitive and pricing pressures. The recent FDA label expansion for Rinvoq strengthens the short-term catalyst of increased immunology revenues, but does not materially change the ongoing risk of revenue erosion from new biosimilars and regulatory cost controls.

One related development is AbbVie’s positive topline results from the Phase 2 ELATE trial for onabotulinumtoxinA (BOTOX) in upper limb essential tremor, supporting further pipeline diversification as AbbVie seeks growth drivers outside its core immunology and neuroscience franchises.

However, investors should be alert that, despite promising new approvals, the risk of concentrated product reliance remains if...

Read the full narrative on AbbVie (it's free!)

AbbVie's outlook forecasts $73.0 billion in revenue and $20.8 billion in earnings by 2028. Achieving this would require annual revenue growth of 7.7% and an increase in earnings of $17.1 billion from the current $3.7 billion.

Uncover how AbbVie's forecasts yield a $232.78 fair value, in line with its current price.

Exploring Other Perspectives

Eight Simply Wall St Community members value AbbVie between US$187.76 and US$416.54 per share, with estimates spanning a wide spectrum. With product expansion fueling optimism but high dependency on a few core drugs still a concern, it’s clear that perspectives on AbbVie’s future can vary, see for yourself how these different views address key uncertainties.

Explore 8 other fair value estimates on AbbVie - why the stock might be worth 18% less than the current price!

Build Your Own AbbVie Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your AbbVie research is our analysis highlighting 2 key rewards and 6 important warning signs that could impact your investment decision.
• Our free AbbVie research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate AbbVie's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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