We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Will AbbVie's Oncology Franchise Remain Under Pressure in Q2?
Read MoreHide Full Article
Key Takeaways
AbbVie's Q2 oncology revenues are expected to decline slightly as Imbruvica sales remain under pressure.
ABBV expects growth from Venclexta and newer therapies to be offset by continued Imbruvica weakness.
Decnupaz may add only a modest Q2 revenue contribution following its FDA approval in May.
AbbVie’s (ABBV - Free Report) oncology franchise has evolved considerably in recent years. What was once largely a hematology-focused business has expanded into solid tumors through a series of acquisitions, collaborations and internal innovation. However, the continued decline in Imbruvica sales remains the franchise’s biggest headwind ahead of the company’s second-quarter 2026 results on July 31.
The portfolio currently comprises six marketed therapies. While blood cancer drugs Imbruvica and Venclexta continue to generate the majority of oncology revenues, AbbVie has expanded its portfolio with newer products. These include Epkinly for lymphoma, Elahere for ovarian cancer, Emrelis for lung cancer and, most recently, Decnupaz for blastic plasmacytoid dendritic cell neoplasm (or BPDCN – a rare and aggressive blood cancer).
The Zacks Consensus Estimate for oncology revenues is pegged at $1.62 billion, suggesting a slight decline from the year-ago period. Growth from Venclexta and newer therapies, such as Epkinly, Elahere and Emrelis, is expected to be more than offset by the continued weakness in Imbruvica. Sales of this blockbuster blood cancer drug are likely to remain the franchise's biggest drag as competitive pressure from newer BTK inhibitors and the impact of Medicare IRA pricing continue to weigh on sales.
Since Decnupaz received FDA approval in May, its contribution to second-quarter revenues is expected to be modest.
For AstraZeneca, oncology sales now account for 44% of total revenues. Sales in its oncology segment rose 16% year over year in first-quarter 2026, driven by the strong performance of medicines such as Tagrisso, Lynparza, Imfinzi, Calquence and Enhertu (in partnership with Daiichi Sankyo).
Merck’s key oncology medicines are PD-L1 inhibitor Keytruda and PARP inhibitor Lynparza, which it markets in partnership with AstraZeneca. Keytruda, approved for several types of cancer, alone accounted for roughly half of MRK’s total revenues in first-quarter 2026.
Pfizer’s oncology revenues grew 7% in first-quarter 2026, driven by drugs such as Lorbrena, the Braftovi-Mektovi combination and Padcev. The segment now accounts for more than 26% of Pfizer’s total revenues.
ABBV’s Price Performance, Valuation & Estimates
Shares of AbbVie have outperformed the industry year to date, as seen in the chart below.
Image Source: Zacks Investment Research
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 16.74 times forward earnings, lower than its industry’s average of 18.78.
Image Source: Zacks Investment Research
EPS estimates for 2026 and 2027 have declined over the past 30 days.
View the Zacks #1 Rank List
Image: Bigstock
Will AbbVie's Oncology Franchise Remain Under Pressure in Q2?
Key Takeaways
AbbVie’s (ABBV - Free Report) oncology franchise has evolved considerably in recent years. What was once largely a hematology-focused business has expanded into solid tumors through a series of acquisitions, collaborations and internal innovation. However, the continued decline in Imbruvica sales remains the franchise’s biggest headwind ahead of the company’s second-quarter 2026 results on July 31.
The portfolio currently comprises six marketed therapies. While blood cancer drugs Imbruvica and Venclexta continue to generate the majority of oncology revenues, AbbVie has expanded its portfolio with newer products. These include Epkinly for lymphoma, Elahere for ovarian cancer, Emrelis for lung cancer and, most recently, Decnupaz for blastic plasmacytoid dendritic cell neoplasm (or BPDCN – a rare and aggressive blood cancer).
The Zacks Consensus Estimate for oncology revenues is pegged at $1.62 billion, suggesting a slight decline from the year-ago period. Growth from Venclexta and newer therapies, such as Epkinly, Elahere and Emrelis, is expected to be more than offset by the continued weakness in Imbruvica. Sales of this blockbuster blood cancer drug are likely to remain the franchise's biggest drag as competitive pressure from newer BTK inhibitors and the impact of Medicare IRA pricing continue to weigh on sales.
Since Decnupaz received FDA approval in May, its contribution to second-quarter revenues is expected to be modest.
Competition in the Oncology Space
Other bigger players in the oncology space are AstraZeneca (AZN - Free Report) , Merck (MRK - Free Report) and Pfizer (PFE - Free Report) .
For AstraZeneca, oncology sales now account for 44% of total revenues. Sales in its oncology segment rose 16% year over year in first-quarter 2026, driven by the strong performance of medicines such as Tagrisso, Lynparza, Imfinzi, Calquence and Enhertu (in partnership with Daiichi Sankyo).
Merck’s key oncology medicines are PD-L1 inhibitor Keytruda and PARP inhibitor Lynparza, which it markets in partnership with AstraZeneca. Keytruda, approved for several types of cancer, alone accounted for roughly half of MRK’s total revenues in first-quarter 2026.
Pfizer’s oncology revenues grew 7% in first-quarter 2026, driven by drugs such as Lorbrena, the Braftovi-Mektovi combination and Padcev. The segment now accounts for more than 26% of Pfizer’s total revenues.
ABBV’s Price Performance, Valuation & Estimates
Shares of AbbVie have outperformed the industry year to date, as seen in the chart below.
Image Source: Zacks Investment Research
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 16.74 times forward earnings, lower than its industry’s average of 18.78.
Image Source: Zacks Investment Research
EPS estimates for 2026 and 2027 have declined over the past 30 days.
Image Source: Zacks Investment Research
AbbVie currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.