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ABBV vs. AZN: Which Pharma Stock is the Better Investment Now?
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Key Takeaways
AbbVie is rebounding post-Humira, with Skyrizi and Rinvoq sales up 53% Y/Y and expected to top $25B in 2025.
AZN's newer drugs are driving growth as it targets $80B in revenues by 2030.
Both face pressures: ABBV from aesthetics softness, AZN from China policy impacts and biosimilar erosion.
AbbVie (ABBV - Free Report) and AstraZeneca (AZN - Free Report) are both global healthcare companies with diversified drug portfolios. Both companies have strong leadership positions in immunology and oncology areas.
While AbbVie also has a solid presence in the neuroscience space, it markets products for aesthetics and eye care. On the other hand, AstraZeneca has a significant presence in rare diseases as well as cardiovascular and respiratory areas, while also marketing vaccines.
Both companies also have promising R&D pipelines capable of delivering innovative treatments and supporting future growth. But which one makes for a better investment pick today? Let's examine the fundamentals of the two stocks to make a prudent choice.
The Case for ABBV
AbbVie has seen tremendous success in the immunology space, powered by three blockbuster drugs — Skyrizi, Rinvoq and Humira — which together account for nearly half of its top line. Although the company faced a major setback in 2023 when Humira lost U.S. exclusivity, AbbVie has since returned to robust growth, driven by the strong and accelerating sales trajectories of Skyrizi and Rinvoq.
So far this year, the combined sales of Skyrizi and Rinvoq have surged 53% year over year to $18.5 billion. This momentum is fueled by strong volume growth and continued market share gains 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). Building on this strength, AbbVie expects combined sales of the two drugs to exceed $25 billion in 2025.
AbbVie’s oncology and neuroscience drugs are also contributing to top-line growth. The oncology segment generated combined revenues of about $5 billion in the first nine months of 2025, up nearly 3% year over year, as higher sales of Venclexta and contributions from new drugs Elahere and Epkinly more than offset the decline in Imbruvica sales. Sales of its neuroscience drugs increased more than 20% to nearly $7.8 billion in the first nine months of 2025, driven by higher sales of Botox Therapeutic, depression drug Vraylar and newer migraine drugs, Ubrelvy and Qulipta.
AbbVie has also pursued an aggressive acquisition strategy in recent years to strengthen its early-stage pipeline and support long-term growth. While immunology remains its core area, it has also signed deals across various other therapeutic areas, including oncology and neuroscience. AbbVie has executed more than 30 M&A transactions since the beginning of 2024. This includes the recently completed acquisition of neuroscience biotech Gilgamesh Pharmaceuticals’ lead pipeline drug, which is being developed in a mid-stage study for major depressive disorder (MDD).
However, AbbVie faces some near-term headwinds like the continued biosimilar erosion of Humira, increasing competitive pressure on cancer drug Imbruvica and the decreasing sales of its aesthetics franchise.
The sales performance of ABBV’s aesthetics franchise has been disappointing so far this year, with sales down more than 7% in the first nine months of 2025. Sales have been negatively impacted due to continued macro challenges and weakened consumer sentiment, especially in the United States.
The Case for AZN
AstraZeneca boasts a diversified geographical footprint as well as a product portfolio with several blockbuster medications. This includes key drugs like Imfinzi (several cancers), Lynparza (four types of cancer), Farxiga/Forxiga (type II diabetes), Ultomiris (rare diseases) and Tagrisso (lung cancer), which are driving top-line growth. The company is also launching these drugs across more markets and in an increased number of indications.
Newer drugs like Wainua, Airsupra, Saphnelo, Datroway (partnered with Daiichi Sankyo) and Truqap are also contributing to top-line growth in 2025, more than offsetting the loss of exclusivity of some mature brands like Brilinta, Pulmicort and Soliris.
Backed by its new products and pipeline drugs, AstraZeneca believes it can post industry-leading top-line growth in the 2025-2030 period. The company expects to generate $80 billion in total revenues by 2030. By the said time frame, AstraZeneca plans to launch 20 new medicines, with nine new medicines already launched/approved. It believes that many of these new medicines will have the potential to generate more than $5 billion in peak-year revenues. The company is also on track to achieve a mid-30s percentage core operating margin by 2026.
AstraZeneca faces its share of challenges, like the impact of Part D redesign on U.S. oncology sales and ongoing investigations at its China subsidiary. Generic/biosimilar competition in the United States and Europe is hurting sales of key drugs like Brilinta and Soliris in 2025. Generic versions of Brilinta were launched in the United States in 2025. Biosimilar versions of Soliris were launched in the United States in March 2025.
AstraZeneca expects fourth-quarter revenues from Farxiga and Lynparza to be affected by volume-based procurement (VBP)-associated stock compensation costs and year-end hospital budget capping in China. The VBP policy is an initiative by the Chinese government to lower the prices of pharmaceuticals and medical devices by awarding large contracts to the lowest bidder. Tender order variability in emerging markets is also expected to hurt fourth-quarter revenues.
How Do Estimates Compare for ABBV & AZN?
The Zacks Consensus Estimate for AbbVie’s 2025 sales and EPS implies a year-over-year increase of 8.2% and 5.1%, respectively. The Zacks Consensus Estimate for 2025 EPS has declined from $11.04 to $10.64, while those for 2026 have risen from $14.41 to $14.42 over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for AZN’s 2025 sales and EPS implies a year-over-year increase of 9% and 11.9%, respectively. Over the past 60 days, EPS estimates for 2025 have risen from $4.56 to $4.60, while those for 2026 have remained consistent at $5.15.
Image Source: Zacks Investment Research
Price Performance and Valuation of ABBV & AZN
Year to date, shares of ABBV have surged 28%, while those of AZN have soared 40%. In comparison, the industry has risen 17%, as seen in the chart below.
Image Source: Zacks Investment Research
From a valuation standpoint, AbbVie seems to be more attractive than AstraZeneca. Going by the price/earnings (P/E) ratio, AZN’s shares currently trade at 17.81 times forward 12-month earnings, higher than 15.90 for ABBV.
Image Source: Zacks Investment Research
AstraZeneca’s dividend yield is 1.10% while AbbVie’s is higher at 2.88%.
Although both companies remain high-quality pharmaceutical players, AstraZeneca holds a modest advantage over AbbVie in this head-to-head comparison.
AbbVie’s growth recovery following Humira’s loss of exclusivity has been impressive, led by the rapid rise of Skyrizi and Rinvoq. That said, AbbVie’s recent strategy has relied heavily on aggressive business development. The company has executed a large number of acquisitions and licensing deals over the past two years, which, while strengthening its long-term pipeline, are weighing on near-term earnings. These transactions have resulted in sizable IPR&D charges and higher integration costs, contributing to downward revisions in near-term EPS expectations. As a result, AbbVie’s earnings trajectory looks somewhat constrained in the short run despite solid underlying demand for its key growth drugs.
In contrast, AstraZeneca’s growth profile appears more internally balanced. The company generates revenues from a broader mix of blockbuster products across oncology, cardiovascular, respiratory and rare diseases, reducing reliance on any single asset. While AbbVie derives a significant portion of its revenue and growth from just two drugs — Skyrizi and Rinvoq — AstraZeneca’s top line is supported by a wider set of established and newer medicines.
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ABBV vs. AZN: Which Pharma Stock is the Better Investment Now?
Key Takeaways
AbbVie (ABBV - Free Report) and AstraZeneca (AZN - Free Report) are both global healthcare companies with diversified drug portfolios. Both companies have strong leadership positions in immunology and oncology areas.
While AbbVie also has a solid presence in the neuroscience space, it markets products for aesthetics and eye care. On the other hand, AstraZeneca has a significant presence in rare diseases as well as cardiovascular and respiratory areas, while also marketing vaccines.
Both companies also have promising R&D pipelines capable of delivering innovative treatments and supporting future growth. But which one makes for a better investment pick today? Let's examine the fundamentals of the two stocks to make a prudent choice.
The Case for ABBV
AbbVie has seen tremendous success in the immunology space, powered by three blockbuster drugs — Skyrizi, Rinvoq and Humira — which together account for nearly half of its top line. Although the company faced a major setback in 2023 when Humira lost U.S. exclusivity, AbbVie has since returned to robust growth, driven by the strong and accelerating sales trajectories of Skyrizi and Rinvoq.
So far this year, the combined sales of Skyrizi and Rinvoq have surged 53% year over year to $18.5 billion. This momentum is fueled by strong volume growth and continued market share gains 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). Building on this strength, AbbVie expects combined sales of the two drugs to exceed $25 billion in 2025.
AbbVie’s oncology and neuroscience drugs are also contributing to top-line growth. The oncology segment generated combined revenues of about $5 billion in the first nine months of 2025, up nearly 3% year over year, as higher sales of Venclexta and contributions from new drugs Elahere and Epkinly more than offset the decline in Imbruvica sales. Sales of its neuroscience drugs increased more than 20% to nearly $7.8 billion in the first nine months of 2025, driven by higher sales of Botox Therapeutic, depression drug Vraylar and newer migraine drugs, Ubrelvy and Qulipta.
AbbVie has also pursued an aggressive acquisition strategy in recent years to strengthen its early-stage pipeline and support long-term growth. While immunology remains its core area, it has also signed deals across various other therapeutic areas, including oncology and neuroscience. AbbVie has executed more than 30 M&A transactions since the beginning of 2024. This includes the recently completed acquisition of neuroscience biotech Gilgamesh Pharmaceuticals’ lead pipeline drug, which is being developed in a mid-stage study for major depressive disorder (MDD).
However, AbbVie faces some near-term headwinds like the continued biosimilar erosion of Humira, increasing competitive pressure on cancer drug Imbruvica and the decreasing sales of its aesthetics franchise.
The sales performance of ABBV’s aesthetics franchise has been disappointing so far this year, with sales down more than 7% in the first nine months of 2025. Sales have been negatively impacted due to continued macro challenges and weakened consumer sentiment, especially in the United States.
The Case for AZN
AstraZeneca boasts a diversified geographical footprint as well as a product portfolio with several blockbuster medications. This includes key drugs like Imfinzi (several cancers), Lynparza (four types of cancer), Farxiga/Forxiga (type II diabetes), Ultomiris (rare diseases) and Tagrisso (lung cancer), which are driving top-line growth. The company is also launching these drugs across more markets and in an increased number of indications.
Newer drugs like Wainua, Airsupra, Saphnelo, Datroway (partnered with Daiichi Sankyo) and Truqap are also contributing to top-line growth in 2025, more than offsetting the loss of exclusivity of some mature brands like Brilinta, Pulmicort and Soliris.
Backed by its new products and pipeline drugs, AstraZeneca believes it can post industry-leading top-line growth in the 2025-2030 period. The company expects to generate $80 billion in total revenues by 2030. By the said time frame, AstraZeneca plans to launch 20 new medicines, with nine new medicines already launched/approved. It believes that many of these new medicines will have the potential to generate more than $5 billion in peak-year revenues. The company is also on track to achieve a mid-30s percentage core operating margin by 2026.
Like AbbVie, AstraZeneca has also expanded pipeline development across various therapeutic areas through inorganic means in recent years. In the last two to three years, the company has acquired several clinical-stage oncology biotechs. This includes the acquisition of EsoBiotec, a biotechnology company specializing in “in vivo” cell therapies with promising early clinical results, which was completed in May 2025.
AstraZeneca faces its share of challenges, like the impact of Part D redesign on U.S. oncology sales and ongoing investigations at its China subsidiary. Generic/biosimilar competition in the United States and Europe is hurting sales of key drugs like Brilinta and Soliris in 2025. Generic versions of Brilinta were launched in the United States in 2025. Biosimilar versions of Soliris were launched in the United States in March 2025.
AstraZeneca expects fourth-quarter revenues from Farxiga and Lynparza to be affected by volume-based procurement (VBP)-associated stock compensation costs and year-end hospital budget capping in China. The VBP policy is an initiative by the Chinese government to lower the prices of pharmaceuticals and medical devices by awarding large contracts to the lowest bidder. Tender order variability in emerging markets is also expected to hurt fourth-quarter revenues.
How Do Estimates Compare for ABBV & AZN?
The Zacks Consensus Estimate for AbbVie’s 2025 sales and EPS implies a year-over-year increase of 8.2% and 5.1%, respectively. The Zacks Consensus Estimate for 2025 EPS has declined from $11.04 to $10.64, while those for 2026 have risen from $14.41 to $14.42 over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for AZN’s 2025 sales and EPS implies a year-over-year increase of 9% and 11.9%, respectively. Over the past 60 days, EPS estimates for 2025 have risen from $4.56 to $4.60, while those for 2026 have remained consistent at $5.15.
Image Source: Zacks Investment Research
Price Performance and Valuation of ABBV & AZN
Year to date, shares of ABBV have surged 28%, while those of AZN have soared 40%. In comparison, the industry has risen 17%, as seen in the chart below.
Image Source: Zacks Investment Research
From a valuation standpoint, AbbVie seems to be more attractive than AstraZeneca. Going by the price/earnings (P/E) ratio, AZN’s shares currently trade at 17.81 times forward 12-month earnings, higher than 15.90 for ABBV.
Image Source: Zacks Investment Research
AstraZeneca’s dividend yield is 1.10% while AbbVie’s is higher at 2.88%.
Image Source: Zacks Investment Research
ABBV or AZN: Which is a Better Pick?
AbbVie and AstraZeneca both carry a Zacks Rank #3 (Hold), which makes choosing one stock a difficult task. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Although both companies remain high-quality pharmaceutical players, AstraZeneca holds a modest advantage over AbbVie in this head-to-head comparison.
AbbVie’s growth recovery following Humira’s loss of exclusivity has been impressive, led by the rapid rise of Skyrizi and Rinvoq. That said, AbbVie’s recent strategy has relied heavily on aggressive business development. The company has executed a large number of acquisitions and licensing deals over the past two years, which, while strengthening its long-term pipeline, are weighing on near-term earnings. These transactions have resulted in sizable IPR&D charges and higher integration costs, contributing to downward revisions in near-term EPS expectations. As a result, AbbVie’s earnings trajectory looks somewhat constrained in the short run despite solid underlying demand for its key growth drugs.
In contrast, AstraZeneca’s growth profile appears more internally balanced. The company generates revenues from a broader mix of blockbuster products across oncology, cardiovascular, respiratory and rare diseases, reducing reliance on any single asset. While AbbVie derives a significant portion of its revenue and growth from just two drugs — Skyrizi and Rinvoq — AstraZeneca’s top line is supported by a wider set of established and newer medicines.