AbbVie’s transformation has been remarkable. The company made a bold decision to diversify its portfolio by acquiring Allergan for $63 billion in 2020. This acquisition broadened AbbVie’s range to include aesthetics, eyecare, and neuroscience products such as Botox and Vraylar.
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The Allergan acquisition has been successful, contributing around $15 billion in revenue from Allergan products alone in 2024. AbbVie continued its expansion by acquiring ImmunoGen and Cerevel Therapeutics in 2024 for $10 billion and $9 billion, respectively.
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Among the acquired assets, the ovarian cancer drug Elahere from ImmunoGen stood out, generating $479 million in sales in 2024, with potential for significant growth through expanded use cases.
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Despite some setbacks, such as the underperformance of Cerevel’s primary drug, the acquisitions have largely contributed to AbbVie’s robust pipeline and diversified revenue streams. AbbVie’s internally developed drugs, Skyrizi and Rinvoq, are also performing remarkably well.
Strategic acquisitions bolster revenue growth
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In 2024, these drugs achieved $17.7 billion in sales, a 51% increase from 2023, surpassing the company’s own sales guidance. AbbVie’s first-quarter 2025 earnings were impressive, with an 8% revenue growth to $13.3 billion, driven by gains in Skyrizi, Rinvoq, and neuroscience segments. The company raised its sales guidance for 2025 by $700 million to $60 billion, underscoring its resilient financial health even as Humira’s sales decline.
One of the primary reasons investors favor AbbVie is its reliable dividend. The company has consistently increased its dividend since its inception in 2013, currently yielding a forward dividend of 3.5% at $1.64 per share each quarter, totaling $6.56 annually. Analyst sentiment towards AbbVie is generally positive, with 17 out of 28 analysts rating it as a “buy” or “strong buy.” The average price target is 11% above the current stock price, and no analysts have issued a “sell” rating.
AbbVie may not be a stock that will see rapid price increases or become a trendy investment, but it provides reliable income and a defensive buffer against economic downturns. For investors looking for stability and sustained growth in turbulent times, AbbVie continues to be a solid choice to hold long-term.
