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Investing.com -- Piper Sandler began coverage of AbbVie (NYSE:ABBV) with an Overweight rating and a $231 price target, saying the U.S. drugmaker’s revenue is better protected from major patent expirations than many peers.
“AbbVie is in the enviable position of not having to countenance major loss of exclusivity (LOE) exposure through the end of the decade,” said analysts at Piper Sandler.
The brokerage said AbbVie faces no significant loss of exclusivity until the end of the decade, with its next major hit expected from psychiatric drug Vraylar in 2030, which should make up only about 6% of 2025 sales.
Strong growth prospects for immunology drugs Skyrizi and Rinvoq, particularly in inflammatory bowel disease, along with expanding oncology sales and steady Botox demand, should support revenue and profit growth, the note said.
Piper Sandler said patents on Rinvoq could run until 2038 and AbbVie is pursuing additional protections for Skyrizi, while most other key products face limited generic threats before the mid-2030s.
“A good bit of the heavy lifting, growth-wise, will admittedly come from therapeutic indications for Botox,” analysts added.
“We envision a return to growth for the aesthetic neuromodulator business, in part a function of the depth and breadth of consumer interest, and in part a function of new offerings”
The firm also pointed to AbbVie’s growing oncology portfolio, including two commercial antibody-drug conjugates and more in development, and potential for renewed growth in the aesthetic Botox market aided by new products.