UBS lifts AbbVie target as focus expands beyond immunology drugs
ABBV•UBS raised its price target on AbbVie to $275 from $260, citing growth prospects beyond its blockbuster immunology drugs. It expects third-quarter sales of $5.7 billion for Skyrizi and $2.7 billion for Rinvoq, and estimates earnings per share of $3.76.
1. Pipeline and sales outlook
UBS said investor focus is shifting from Skyrizi and Rinvoq to the next wave of growth in AbbVie's immunology franchise, while momentum continues elsewhere in the pipeline. It highlighted mid-stage data due later this month for Skyrizi combination therapies in Crohn's disease and ulcerative colitis, and described lutikizumab as a potential $1 billion to $2 billion opportunity and Rinvoq as a potential $500 million-plus sales opportunity.
2. Other drug developments
UBS cited positive late-stage data for cancer drugs Epkinly and etentamig, along with the recent launch of Parkinson's treatment tavapadon. Its $3.76 third-quarter EPS estimate is within AbbVie's forecast range of $3.73 to $3.77.
