Shares of AbbVie ABBV have gained nearly 11% in the past week, translating to roughly $43 billion in market value. The upside was driven not by a single catalyst but by several positive developments that fueled investor confidence in the company’s long-term growth prospects.
The momentum began after AbbVie unveiled its $10.9 billion acquisition of clinical-stage biotech Apogee Therapeutics. The transaction is intended to strengthen the company's immunology franchise for the next decade and beyond, while enhancing its long-term competitive position against Dupixent, the blockbuster immunology therapy jointly marketed by Sanofi SNY and Regeneron REGN. More importantly, the acquisition appears to have eased one of the market's biggest concerns — how AbbVie plans to sustain growth once its current blockbuster therapies, Skyrizi and Rinvoq, eventually mature.
The Apogee acquisition is only one component of AbbVie's broader strategy to reinforce its leadership in immunology. At the same time, the company continues to expand the commercial reach of its existing products through new regulatory approvals that extend their addressable markets.
Last week, AbbVie secured approvals in both the United States and Europe to expand the label for Skyrizi, allowing its use in pediatric patients with moderate-to-severe plaque psoriasis. The expanded indication broadens the drug’s addressable patient population and further strengthens one of the company's key growth drivers in immunology.
More recently, an EMA advisory committee recommended approving Rinvoq for two new autoimmune indications — alopecia areata and vitiligo — in the European Union. If approved by the European Commission, the expanded label would further reinforce AbbVie's long-term growth prospects in immunology while diversifying Rinvoq's revenue opportunity.
AbbVie’s Growth Story Goes Beyond Immunology
While immunology remains AbbVie's primary growth engine, the company is also generating meaningful momentum across other therapeutic areas. Its neuroscience franchise continues to expand and is becoming an increasingly important contributor to revenue growth. One of the key drivers is Vyalev, the company's Parkinson's disease therapy, which is expected to surpass $1 billion in annual global sales despite launching in the United States only last year.
AbbVie is also strengthening its oncology portfolio. Last month, the company secured approval for Decnupaz to treat adults with blastic plasmacytoid dendritic cell neoplasm (BPDCN), a rare and aggressive blood cancer. The oncology franchise remains anchored by Venclexta and Elahere, providing another avenue for sustained long-term growth.
ABBV’s Stock Performance, Valuation and Estimates
Shares of AbbVie have slightly underperformed 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 16.73 times forward earnings, lower than its industry’s average of 18.77.
EPS estimates for 2026 and 2027 have declined in 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.
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.See Top Quantum Stocks Now >>
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
AbbVie Inc. (ABBV): Free Stock Analysis Report
Regeneron Pharmaceuticals, Inc. (REGN): Free Stock Analysis Report
Sanofi (SNY): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research