AbbVie Inc

AbbVie's oncology revenues fell 2.4% year over year to $1.65 billion in the second quarter of 2026, pressured by a 29.4% drop in Imbruvica sales to $532 million. The decline was attributed to competitive pressure and IRA-driven pricing changes. Growth in other oncology products partially offset the decline, with Venclexta sales up nearly 10% to $771 million, Elahere up 32% to $211 million, and Epkinly up 48% to $103 million. The quarter also marked the launch of Decnupaz, AbbVie's first marketed ADC in hematology, following FDA approval for BPDCN. AbbVie shares have gained 16% year to date, underperforming the industry's 18% growth, and the stock trades at 17.15 times forward earnings, below the industry average of 19.44.

Spyre Therapeutics expanded its inflammatory-disease strategy in August with SPY772 and the phase II SKYLIGHT study in hidradenitis suppurativa, or HS, moving its combination approach into a new disease area beyond inflammatory bowel disease and rheumatology. SKYLIGHT is evaluating SPY072 plus bimekizumab against bimekizumab alone in approximately 150 adults with moderate-to-severe HS, with the primary endpoint of HiSCR75 response rate at week 16 and topline data expected in late 2027 or early 2028. The study tests whether adding SPY072 to bimekizumab can improve the week-16 response rate relative to bimekizumab alone, and positive results could support further SPY772 development in HS and other indications. Spyre's pipeline already spans ulcerative colitis, rheumatoid arthritis, psoriatic arthritis and axial spondyloarthritis, and the company is advancing multiple IBD monotherapies and dual-antibody combinations. Competition in HS includes AbbVie's established Humira and its developing ABBV-1451, as well as Incyte's FDA-accepted New Drug Application for povorcitinib with a U.S. launch targeted for the first quarter of 2027 if approved. Research and development expenses rose 63.2% year over year to $65.5 million in the second quarter of 2026, and Spyre ended the quarter with $1.15 billion in cash, cash equivalents and marketable securities, which management expects to fund operations into the second half of 2029.

Johnson & Johnson's pipeline is becoming an increasingly important growth driver as the company looks to offset future pressure from mature products such as Stelara and eventually Darzalex. The company has a particularly strong set of catalysts in oncology, immunology and neuroscience, with several potential approvals, label expansions and important phase III readouts scheduled. In the past year, it has gained approval for new products like Inlexzo/TAR-200, a first-of-its-kind drug-releasing system, for treating high-risk non-muscle invasive bladder cancer, Imaavy (nipocalimab) for treating generalized myasthenia gravis and Icotyde (icotrokinra), an oral targeted peptide inhibitor of the IL-23 receptor, for treating moderate-to-severe plaque psoriasis. J&J markets Icotyde in partnership with Protagonist Therapeutics. On the second-quarter conference call, J&J said that it is seeing strong launches of Inlexzo, Icotyde, as well as Imaavy. Nipocalimab, an FcRn blocker, is also being evaluated for various immune-mediated conditions. It is under priority review in the United States for warm autoimmune hemolytic anemia, in late-stage studies for hemolytic disease of the fetus and newborn, systemic lupus erythematosus and Sjogren's disease, and in mid-stage studies for idiopathic inflammatory myopathy. J&J believes that nipocalimab has pipeline-in-a-product potential. J&J believes that Icotyde/icotrokinra has the potential to revolutionize the treatment of plaque psoriasis with a once-daily pill, whereas most currently available effective options for treating plaque psoriasis are injectables, such as AbbVie's popular injection, Skyrizi, and J&J's own injection, Tremfya. Icotyde offers a compelling advantage over existing plaque psoriasis treatments by combining biologic-level precision with the convenience of an oral pill. Unlike injectable IL-23 biologics, such as AbbVie's Skyrizi and Tremfya, it eliminates the need for injections, improving patient comfort and adherence. Icotrokinra is also being evaluated in phase III studies for ulcerative colitis and psoriatic arthritis and in phase II for Crohn's Disease. It has the potential to be J&J's largest product ever, with $10 billion in sales potential. J&J expects several meaningful pipeline catalysts in the second half of the year, including potential FDA regulatory approval for Imaavy for warm autoimmune hemolytic anemia. In July, J&J announced positive top-line data from the phase III MonumenTAL-6 study evaluating Tecvayli plus Talvey in patients with relapsed or refractory multiple myeloma who had received one to four prior lines of therapy. The combination regimen reduced the risk of disease progression or death by 89% versus investigator's choice of standard care while reducing the risk of death by 62%. Other important data readouts expected later this year include Inlexzo in high-risk bladder cancer, Icotyde in psoriatic arthritis and Caplyta in bipolar mania. A key pipeline candidate is JNJ-4804, a co-antibody therapeutic being developed in phase III studies for ulcerative colitis and Crohn's disease. The company is also working on expanding labels of currently marketed products like Darzalex, Tremfya, Carvykti, Erleada, Rybrevant/Lazcluze and others. As regards its MedTech segment, a key product approved recently in the United States was the OTTAVA robotic surgery system, J&J's next-generation soft-tissue surgical robot. It was approved in July. VARIPULSE Pro, an advanced Pulsed Field Ablation platform, is expected to be approved by the FDA later this year. VARIPULSE Pro was launched in the EU in April. Overall, J&J's robust pipeline and a steady stream of clinical and regulatory catalysts should support growth in the second half of 2026 and beyond. The potential expansion of newer drugs, strong late-stage candidates and continued MedTech innovation provide multiple avenues for J&J to offset patent pressures and sustain long-term growth. J&J's shares have outperformed the industry so far this year. The stock has risen 30.6% year to date compared with 18.2% appreciation of the industry. From a valuation standpoint, J&J is expensive. Going by the price/earnings ratio, the company's shares currently trade at 21.84 forward earnings, higher than 19.50 for the industry. The stock is also trading above its five-year mean of 15.65. The Zacks Consensus Estimate for 2026 earnings has risen from $11.58 per share to $11.59 per share over the past 60 days, while that for 2027 earnings has gone up from $12.65 per share to $12.80 over the same time frame. J&J has a Zacks Rank #3 (Hold) at present.

Genmab and AbbVie confirmed that the Phase 3 EPCORE DLBCL-1 study of epcoritamab failed to meet its primary endpoint of overall survival in the United States. The trial evaluated epcoritamab monotherapy against investigator's choice of chemoimmunotherapy in transplant-ineligible adults with relapsed or refractory diffuse large B-cell lymphoma. While the drug maintains its accelerated FDA approval, the companies must review the full data set with regulators to determine a path forward. Genmab reported first-half 2026 revenue of $2.051 billion, up 25% year over year, and raised its full-year revenue guidance to $4.325 billion to $4.525 billion. AbbVie posted second-quarter net revenues of $16.99 billion, up 10.2%, with adjusted diluted EPS of $3.65, up 22.9%.

AbbVie is taking on $8 billion in debt to finance its $10.6 billion acquisition of Apogee Therapeutics, a deal expected to close in the third quarter pending regulatory approvals. The company said the acquisition will not boost adjusted earnings per share until 2032 and will cause $0.14 in dilution this year, lowering its adjusted EPS guidance to a range of $13.87 to $14.07. AbbVie plans to maintain its dividend, having raised it by 5.5% to $1.73 per share this year, and aims to preserve its A2/A- credit rating while reducing net leverage to about 2 times within two to three years after closing. The deal is centered on Apogee's lead drug candidate, Zumilokibart, a monoclonal antibody targeting interleukin-13 for atopic dermatitis with a three- to six-month dosing interval that could compete with Sanofi's Dupixent, which generated 15.7 billion euros in 2025 sales. AbbVie reported second-quarter revenue of $16.9 billion, up 10.2%, and earnings per share of $2.03, a 290% increase from the prior year.

AbbVie lowered its full-year adjusted EPS guidance to $13.97 at the midpoint, a 1.5% decrease, even as second-quarter revenue rose 10.2% year-on-year to $16.99 billion, beating analyst estimates of $16.79 billion. Adjusted EPS of $3.65 also exceeded the $3.61 consensus. CEO Robert Michael highlighted over 20% growth in both the immunology and neuroscience portfolios, with SKYRIZI achieving market leadership in multiple countries. During the earnings call, analysts pressed management on SKYRIZI's subcutaneous induction timeline, competitive dynamics in psoriasis, and the Tevapadon launch in Parkinson's disease, while executives expressed confidence in pipeline progress and manufacturing readiness.

AbbVie shares gave up early gains and closed slightly lower on Thursday after President Donald Trump sent letters to major U.S. pharmaceutical companies demanding prescription drug price reductions within 60 days. The stock had initially risen on better-than-expected second-quarter results, with total revenue of just over $15.4 billion, a nearly 7% increase from a year ago, and adjusted earnings of $2.97 per share, both topping analyst estimates. Sales of blockbuster drugs Skyrizi and Rinvoq surged 62% to $4.4 billion and 42% to more than $2 billion, respectively, while Humira revenue fell 58% to less than $1.2 billion due to biosimilar competition. AbbVie also raised its full-year 2025 adjusted earnings guidance to $11.88 to $12.08 per share, up from the prior range of $11.67 to $11.87. The late-session decline mirrored the broader S&P 500 index after news of Trump's demand, which included a letter to AbbVie CEO Rob Michael stating that brand-name drug prices in the U.S. are up to three times higher than elsewhere.

Several major companies reported quarterly earnings, with mixed results. AbbVie beat earnings estimates by a penny to $3.65 per share on revenues of $16.99 billion, but lowered its full-year guidance, sending shares down 4%. ExxonMobil posted a negative earnings surprise of 4.35% on lower oil production, while Chevron beat estimates by 4.48%; both companies exceeded revenue estimates by 21%, though only Chevron traded higher. Colgate-Palmolive surpassed earnings estimates with $0.99 per share versus $0.95 expected, but higher tariff costs dampened its outlook, and shares fell 1.8%.

U.S. stock futures are trading higher in the final session of the week, with the Dow up 179 points, the S&P 500 up 12 points, and the Nasdaq up 241 points. The moves follow Wednesday's Fed meeting and press conference with Fed Chair Kevin Warsh, and come as Q2 employment costs rose 0.9%, matching the prior quarter and coming in 10 basis points above expectations. In earnings, AbbVie beat by a penny with earnings of $3.65 per share on revenues of $16.99 billion, but shares fell 4% after full-year guidance was lowered. ExxonMobil missed earnings estimates by 4.35% on lower oil production, while Chevron beat by 4.48%, with both companies surpassing revenue estimates by 21%. Colgate-Palmolive reported earnings of $0.99 per share, above the $0.95 estimate, but shares declined 1.8% as higher tariff costs dampened the outlook.

AbbVie could be 3% undervalued following a setback in the Phase 3 EPCORE DLBCL-1 trial for epcoritamab, where the U.S. portion did not meet its overall survival primary endpoint. The stock has posted a 30-day return of 10.42%, a 90-day return of 30.52%, and a one-year total shareholder return of 40.53%. One widely followed narrative pegs AbbVie's fair value at $266.89, modestly above the last close of $259.36, implying the stock is 2.8% undervalued. However, a contrasting view highlights AbbVie's current price-to-earnings ratio of 127.5 times, far above the U.S. biotech industry average of 16.9 times and a fair ratio of 42.8 times, raising questions about the premium already priced in.

Johnson & Johnson's Innovative Medicine segment delivered a 6.8% operational sales increase to $16.38 billion in the second quarter, driven by strong performances from Darzalex, Tremfya, and Erleada. Darzalex sales rose 18.9% to $4.21 billion, Tremfya surged 72.5% to $2.05 billion, and Erleada grew 9.5% to $995 million. These gains were partly offset by a 55.2% drop in Stelara sales to $740 million due to loss of exclusivity, which negatively impacted segment growth by 760 basis points. J&J expects the Innovative Medicine segment to remain its primary growth engine through the remainder of 2026, supported by new launches like Icotyde, Rybrevant, and Inlexzo, though generic competition for Simponi and Opsumit is anticipated to begin this year.

Genmab and AbbVie announced that the Phase 3 EPCORE DLBCL-1 trial evaluating epcoritamab in adults with relapsed or refractory diffuse large B-cell lymphoma did not meet its primary endpoint of overall survival in the United States. The open-label, randomized study compared epcoritamab against investigator's choice of rituximab plus gemcitabine and oxaliplatin or bendamustine plus rituximab in patients ineligible for autologous stem cell transplantation. The companies stated that the trial failed to demonstrate a statistically significant improvement in overall survival. Additional results will be submitted for publication in a peer-reviewed medical journal. Genmab shares closed at $29.17, up 1.11%, but fell 1.54% in overnight trading, while AbbVie shares closed at $256.92, up 1.43%, and rose 0.35% overnight.

Bristol Myers Squibb's Sotyktu is beginning to reshape how rheumatologists view oral targeted therapies for psoriatic arthritis, according to Spherix Global Insights' first quarterly Launch Dynamix report. One-third of surveyed rheumatologists have already prescribed Sotyktu, and most non-users expect to initiate their first patient within six months, with physicians estimating that roughly one in five psoriatic arthritis patients could ultimately be appropriate candidates. Early adopters are positioning the TYK2 inhibitor between PDE4 inhibitors and JAK inhibitors, citing its novel mechanism, oral convenience, and favorable perceived safety profile as key differentiators. Amgen's Otezla and JAK inhibitors are most frequently cited as therapies likely to lose share, while AbbVie's Rinvoq served as the fallback therapy in 40% of recent Sotyktu initiations. Lack of physician familiarity remains the leading barrier to broader use, followed by reimbursement hurdles and out-of-pocket costs, though physicians expect prescribing to increase as clinical experience and payer access improve.

AbbVie's oncology franchise is expected to remain under pressure in the second quarter of 2026, with the Zacks Consensus Estimate for oncology revenues 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 continued weakness in Imbruvica, which faces competitive pressure from newer BTK inhibitors and the impact of Medicare IRA pricing. The portfolio now includes six marketed therapies, with the recent FDA approval of Decnupaz in May for blastic plasmacytoid dendritic cell neoplasm expected to contribute only modestly to second-quarter revenues. AbbVie shares have outperformed the industry year to date and trade at a discount based on forward price-to-earnings, though earnings estimates for 2026 and 2027 have declined over the past 30 days. The company currently carries a Zacks Rank of 3, or Hold.