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AbbVie Down 3% in a Month: Why Holding the Stock Still Makes Sense
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Key Takeaways
ABBV shares fell 3.2% in a month after it denied reports of talks to acquire Revolution Medicines.
ABBV is offsetting Humira LOE as Skyrizi & Rinvoq delivered $18.5B in sales in the first nine months of 2025.
ABBV faces Aesthetics weakness and Humira erosion, but oncology and neuroscience growth lift revenues.
AbbVie (ABBV - Free Report) stock has declined 3.2% in a month. Shares of this large drugmaker dipped recently after it denied takeover talks with Redwood City, CA-based cancer biotech, Revolution Medicines (RVMD - Free Report) . Last week, a report issued by the Wall Street Journal (WSJ) mentioned that AbbVie was in advanced talks to acquire Revolution Medicines. The article stated that AbbVie was nearing a deal that could value Revolution Medicines at around $20 billion or more. However, AbbVie denied the rumors in an emailed statement to Reuters.
Thereafter, a Financial Times report stated that Merck (MRK - Free Report) was in talks to acquire RVMD in a transaction that could value RVMD for up to $32 billion. However, the report mentioned that MRK and RVMD have not yet finalized the deal, and a potential deal remains several weeks away.
Separately, the stock has been muted for the past three months despite a beat-and-raise third quarter, as the Humira loss of exclusivity (LOE), softer sales of oncology drugs and continued weakness in its Aesthetics unit weighed on the stock.
However, should investors buy the dip or stay away from the stock for now? Let us properly assess AbbVie’s strengths and weaknesses to make a proper investment decision. Let’s break down.
ABBV’s Successful New Drugs — Skyrizi and Rinvoq
AbbVie lost patent protection for its blockbuster drug, Humira, in the United States in January 2023 and in the EU in 2018. Humira's sales are declining due to LOE and biosimilar erosion. However, AbbVie has successfully navigated the LOE of Humira, a drug that once generated more than 50% of its total revenues. It has accomplished this by launching two other successful new immunology medicines, Skyrizi and Rinvoq, which are performing extremely well, bolstered by approvals in new indications, and should support top-line growth in the next few years.
Skyrizi and Rinvoq generated combined sales of $18.5 billion in the first nine months of 2025.
The drugs are seeing strong performance 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).
Skyrizi sales are now annualizing at almost $18 billion and Rinvoq at more than $8 billion. AbbVie expects to outperform its target of combined sales of Skyrizi and Rinvoq of more than $25 billion in 2025 and more than $31 billion by 2027. Strong immunology market growth, market share gains and momentum from new indications, such as the recent launch of Skyrizi in UC, as well as the potential for five new indications for Rinvoq over the next few years, are expected to drive these drugs’ growth.
ABBV’s Oncology & Neuroscience Drugs Also Contributing
AbbVie has built a substantial oncology franchise with Imbruvica and Venclexta. Its oncology segment generated combined revenues of $5.0 billion in the first nine months of 2025, up 2.7% year over year as higher sales of Venclexta and contributions from new drugs, Elahere and Epkinly, more than offset the decline in Imbruvica sales. Some key oncology drugs approved in the past couple of years are Epkinly and Emrelis. Elahere was added to AbbVie’s oncology portfolio with the February 2024 acquisition of Immunogen. These three new drugs have strengthened AbbVie’s oncology franchise.
AbbVie’s neuroscience portfolio is also contributing to top-line growth. Sales of its neuroscience drugs increased 20.3% to almost $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.
The initial international launch of Vyalev in Parkinson’s disease is encouraging, and the company’s Parkinson’s disease franchise, comprising Vyalev and once-daily oral treatment tavapadon (under review in the United States), is being seen as the key to growth in neuroscience.
Over the next couple of years. AbbVie expects new product approvals for tavapadon and pivekimab sunirine (blastic plasmacytoid dendritic cell neoplasm) and pivotal data readouts for key pipeline candidates, lutikizumab, Temab-A and etentamig. These pipeline programs have the potential to drive long-term growth for AbbVie, while Skyrizi and Rinvoq will boost near-term growth.
AbbVie on an Acquisition Spree
AbbVie has been on an inorganic growth track over the past couple of years to bolster its early-stage pipeline, which should drive long-term growth. Particularly, it is signing several M&A deals in the immunology space, its core area, while also entering into some early-stage alliances in oncology and neuroscience. AbbVie has executed more than 30 M&A transactions since the beginning of 2024. In a key recent deal, in October, AbbVie acquired private biotech, Gilgamesh Pharmaceuticals' bretisilocin, a novel, investigational therapy for major depressive disorder. The agreement will strengthen its neuroscience pipeline.
Sales of Humira are declining due to biosimilar erosion. The launch of Humira biosimilars in the United States in 2023 significantly eroded the drug’s sales in 2024, with the decline being sharper in 2025 and expected to continue in 2026 as more plans excluded branded Humira and moved to exclusive biosimilar contracts. Humira sales declined more than 50% in the first nine months of 2025.
AbbVie is seeing decreasing sales of the Aesthetics unit. AbbVie’s global sales of its aesthetics portfolio declined 7.4% in the first nine months of 2025.
Continued macro challenges and low consumer sentiment, especially in the United States, as concerns about the economy and inflation weigh on discretionary spending, are hurting aesthetics sales. Juvederm sales fell 16.7% in the first nine months of 2025. Botox Cosmetics sales declined 7.4% in the first nine months of 2025. AbbVie now expects category growth to be below previous expectations.
On the third-quarter conference call, AbbVie lowered its expectation for its Aesthetics business from $5.1 billion to $4.9 billion due to greater-than-expected market softness globally.
ABBV Stock Price, Valuation and Estimate Revision
ABBV stock has risen 24.6% in the past year compared with an increase of 18.5% for the industry. The stock has also outperformed the sector and the S&P 500, as seen in the chart below.
ABBV Stock Outperforms Industry, Sector & S&P 500
Image Source: Zacks Investment Research
From a valuation standpoint, AbbVie is reasonably priced. Going by the price/earnings ratio, the company’s shares currently trade at 15.20 forward earnings, lower than 17.56 for the industry. However, the stock is trading above its five-year mean of 13.56.
ABBV Stock Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2026 earnings has risen from $14.38 to $14.42 per share over the past 30 days.
ABBV Estimate Movement
Image Source: Zacks Investment Research
Stay Invested in ABBV Stock
AbbVie combats its share of headwinds, like Humira LOE impact, increasing competitive pressure on Imbruvica and continued macro woes for Aesthetics. However, the company has faced its biggest challenge — Humira’s patent cliff — quite well and looks well-positioned for continued strong growth in the years ahead. AbbVie returned to robust revenue growth in 2025, which is just the second year following the U.S. Humira LOE, driven by its ex-Humira platform.
Sales of AbbVie’s ex-Humira drugs rose more than 20% (on a reported basis) in the third quarter, which was above its expectations, driven by Skyrizi, Rinvoq and neuroscience.
Boosted by its new product launches, AbbVie had expected to return to mid-single-digit revenue growth in 2025 with a high single-digit CAGR through 2029, as it has no significant LOE events for the rest of this decade. A substantial portion of this growth is expected to be driven by the robust performance of Skyrizi and Rinvoq. In the first nine months of the year, its total revenues rose 8.2%, in line with its expectation of mid-single-digit revenue growth. With no significant LOEs in this decade, AbbVie enjoys the flexibility to invest more in R&D to continue to acquire external innovation.
Although the stock has slipped slightly over the past month, there is no need to panic and sell the stock. The stock has consistently done well in 2026. A decent valuation, expectations for continued strong earnings growth, and a robust pipeline are good enough reasons to stay invested in this Zacks Rank #3 (Hold) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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AbbVie Down 3% in a Month: Why Holding the Stock Still Makes Sense
Key Takeaways
AbbVie (ABBV - Free Report) stock has declined 3.2% in a month. Shares of this large drugmaker dipped recently after it denied takeover talks with Redwood City, CA-based cancer biotech, Revolution Medicines (RVMD - Free Report) . Last week, a report issued by the Wall Street Journal (WSJ) mentioned that AbbVie was in advanced talks to acquire Revolution Medicines. The article stated that AbbVie was nearing a deal that could value Revolution Medicines at around $20 billion or more. However, AbbVie denied the rumors in an emailed statement to Reuters.
Thereafter, a Financial Times report stated that Merck (MRK - Free Report) was in talks to acquire RVMD in a transaction that could value RVMD for up to $32 billion. However, the report mentioned that MRK and RVMD have not yet finalized the deal, and a potential deal remains several weeks away.
Separately, the stock has been muted for the past three months despite a beat-and-raise third quarter, as the Humira loss of exclusivity (LOE), softer sales of oncology drugs and continued weakness in its Aesthetics unit weighed on the stock.
However, should investors buy the dip or stay away from the stock for now? Let us properly assess AbbVie’s strengths and weaknesses to make a proper investment decision. Let’s break down.
ABBV’s Successful New Drugs — Skyrizi and Rinvoq
AbbVie lost patent protection for its blockbuster drug, Humira, in the United States in January 2023 and in the EU in 2018. Humira's sales are declining due to LOE and biosimilar erosion. However, AbbVie has successfully navigated the LOE of Humira, a drug that once generated more than 50% of its total revenues. It has accomplished this by launching two other successful new immunology medicines, Skyrizi and Rinvoq, which are performing extremely well, bolstered by approvals in new indications, and should support top-line growth in the next few years.
Skyrizi and Rinvoq generated combined sales of $18.5 billion in the first nine months of 2025.
The drugs are seeing strong performance 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).
Skyrizi sales are now annualizing at almost $18 billion and Rinvoq at more than $8 billion. AbbVie expects to outperform its target of combined sales of Skyrizi and Rinvoq of more than $25 billion in 2025 and more than $31 billion by 2027. Strong immunology market growth, market share gains and momentum from new indications, such as the recent launch of Skyrizi in UC, as well as the potential for five new indications for Rinvoq over the next few years, are expected to drive these drugs’ growth.
AbbVie has also settled patent litigation with all generic manufacturers for Rinvoq. This extended the drug’s patent exclusivity by four years to 2037.
ABBV’s Oncology & Neuroscience Drugs Also Contributing
AbbVie has built a substantial oncology franchise with Imbruvica and Venclexta. Its oncology segment generated combined revenues of $5.0 billion in the first nine months of 2025, up 2.7% year over year as higher sales of Venclexta and contributions from new drugs, Elahere and Epkinly, more than offset the decline in Imbruvica sales. Some key oncology drugs approved in the past couple of years are Epkinly and Emrelis. Elahere was added to AbbVie’s oncology portfolio with the February 2024 acquisition of Immunogen. These three new drugs have strengthened AbbVie’s oncology franchise.
AbbVie’s neuroscience portfolio is also contributing to top-line growth. Sales of its neuroscience drugs increased 20.3% to almost $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.
The initial international launch of Vyalev in Parkinson’s disease is encouraging, and the company’s Parkinson’s disease franchise, comprising Vyalev and once-daily oral treatment tavapadon (under review in the United States), is being seen as the key to growth in neuroscience.
Over the next couple of years. AbbVie expects new product approvals for tavapadon and pivekimab sunirine (blastic plasmacytoid dendritic cell neoplasm) and pivotal data readouts for key pipeline candidates, lutikizumab, Temab-A and etentamig. These pipeline programs have the potential to drive long-term growth for AbbVie, while Skyrizi and Rinvoq will boost near-term growth.
AbbVie on an Acquisition Spree
AbbVie has been on an inorganic growth track over the past couple of years to bolster its early-stage pipeline, which should drive long-term growth. Particularly, it is signing several M&A deals in the immunology space, its core area, while also entering into some early-stage alliances in oncology and neuroscience. AbbVie has executed more than 30 M&A transactions since the beginning of 2024. In a key recent deal, in October, AbbVie acquired private biotech, Gilgamesh Pharmaceuticals' bretisilocin, a novel, investigational therapy for major depressive disorder. The agreement will strengthen its neuroscience pipeline.
ABBV’s Struggling Aesthetics Segment & Humira Erosion
Sales of Humira are declining due to biosimilar erosion. The launch of Humira biosimilars in the United States in 2023 significantly eroded the drug’s sales in 2024, with the decline being sharper in 2025 and expected to continue in 2026 as more plans excluded branded Humira and moved to exclusive biosimilar contracts. Humira sales declined more than 50% in the first nine months of 2025.
AbbVie is seeing decreasing sales of the Aesthetics unit. AbbVie’s global sales of its aesthetics portfolio declined 7.4% in the first nine months of 2025.
Continued macro challenges and low consumer sentiment, especially in the United States, as concerns about the economy and inflation weigh on discretionary spending, are hurting aesthetics sales. Juvederm sales fell 16.7% in the first nine months of 2025. Botox Cosmetics sales declined 7.4% in the first nine months of 2025. AbbVie now expects category growth to be below previous expectations.
On the third-quarter conference call, AbbVie lowered its expectation for its Aesthetics business from $5.1 billion to $4.9 billion due to greater-than-expected market softness globally.
ABBV Stock Price, Valuation and Estimate Revision
ABBV stock has risen 24.6% in the past year compared with an increase of 18.5% for the industry. The stock has also outperformed the sector and the S&P 500, as seen in the chart below.
ABBV Stock Outperforms Industry, Sector & S&P 500
From a valuation standpoint, AbbVie is reasonably priced. Going by the price/earnings ratio, the company’s shares currently trade at 15.20 forward earnings, lower than 17.56 for the industry. However, the stock is trading above its five-year mean of 13.56.
ABBV Stock Valuation
The Zacks Consensus Estimate for 2026 earnings has risen from $14.38 to $14.42 per share over the past 30 days.
ABBV Estimate Movement
Stay Invested in ABBV Stock
AbbVie combats its share of headwinds, like Humira LOE impact, increasing competitive pressure on Imbruvica and continued macro woes for Aesthetics. However, the company has faced its biggest challenge — Humira’s patent cliff — quite well and looks well-positioned for continued strong growth in the years ahead. AbbVie returned to robust revenue growth in 2025, which is just the second year following the U.S. Humira LOE, driven by its ex-Humira platform.
Sales of AbbVie’s ex-Humira drugs rose more than 20% (on a reported basis) in the third quarter, which was above its expectations, driven by Skyrizi, Rinvoq and neuroscience.
Boosted by its new product launches, AbbVie had expected to return to mid-single-digit revenue growth in 2025 with a high single-digit CAGR through 2029, as it has no significant LOE events for the rest of this decade. A substantial portion of this growth is expected to be driven by the robust performance of Skyrizi and Rinvoq. In the first nine months of the year, its total revenues rose 8.2%, in line with its expectation of mid-single-digit revenue growth. With no significant LOEs in this decade, AbbVie enjoys the flexibility to invest more in R&D to continue to acquire external innovation.
Although the stock has slipped slightly over the past month, there is no need to panic and sell the stock. The stock has consistently done well in 2026. A decent valuation, expectations for continued strong earnings growth, and a robust pipeline are good enough reasons to stay invested in this Zacks Rank #3 (Hold) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.