AbbVie Inc. (ABBV): New Analyst Report from Zacks Equity Research - Zacks Equity Research Report

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Summary:
AbbVie reported third quarter 2014 earnings of $0.89 per share, up 8.5% from the year-ago earnings and surpassing the Zacks Consensus Estimate of $0.78. Revenues increased 7.8% to $5.019 billion in the third quarter of 2014, surpassing the Zacks Consensus Estimate of $4.828 billion. Results were boosted by Humira's strong performance. AbbVie, which terminated its merger deal with Shire, guided above expectations in addition to reporting strong third quarter results. The launch of the all-oral, interferon-free therapy with/without RBV HCV combination therapy, potentially later this year, would be a major boost for AbbVie. We expect investor focus to remain on updates regarding the HCV combination. We maintain a Neutral recommendation on AbbVie.

Overview:

North Chicago, IL-based AbbVie came into existence on Jan 1, 2013, after Abbott Laboratories divested its pharmaceutical division. AbbVie, a biopharmaceutical company, focuses on the development and marketing of treatments for complex and serious ailments. The company has a presence in the rheumatoid arthritis, psoriasis, Crohn's disease, HIV, cystic fibrosis, testosterone, thyroid disease, Parkinson's disease, ulcerative colitis, and chronic kidney disease markets.

AbbVie's flagship product Humira is approved for several indications like rheumatoid arthritis (moderate to severe), moderately to severely active polyarticular juvenile idiopathic arthritis, active psoriatic arthritis, active ankylosing spondylitis, Crohn's disease (moderate to severe), ulcerative colitis (moderate to severe), axial spondyloarthritis, pediatric Crohn's disease and chronic plaque psoriasis (moderate to severe).

Other drugs include AndroGel (low testosterone), Kaletra (HIV), Niaspan (cholesterol management), Synthroid (hormone therapy for thyroid disease), Creon (pancreatic enzyme replacement therapy for conditions associated with cystic fibrosis and chronic pancreatitis), Zemplar (secondary hyperparathyroidism), Duodopa (advanced Parkinson's disease - currently approved in Europe and other international markets) and TriCor/TriLipix (cholesterol management) among others.


The company also has several candidates in different stages of development across a wide range of therapeutic areas like immunology, renal care, hepatitis C virus (HCV), women's health, oncology, and neuroscience (including multiple sclerosis and Alzheimer's disease). Key pipeline candidates include Elagolix (phase III ongoing for the treatment of endometriosis data from the first phase III study due in the second half of 2014 and phase IIb for uterine fibroids being developed with Neurocrine Biosciences), atrasentan (phase III ongoing for the treatment of chronic kidney disease with the study scheduled to complete in 2017), ABT-199 (phase II ongoing in relapsed refractory chronic lymphocytic leukemia patients with a 17p deletion partnered with Roche), veliparib (phase III ongoing for triple negative breast cancer and squamous non-small cell lung cancer (NSCLC)), elotuzumab (multiple myeloma phase III studies ongoing with results due in early 2015 partnered with Bristol-Myers Squibb) and Zinbryta (daclizumab - relapsing remitting multiple sclerosis partnered with Biogen). The company has an agreement with Infinity Pharmaceuticals for the development and commercialization of the latter's oncology candidate duvelisib (IPI-145).

In Jul 2014, AbbVie announced its intention to acquire UK based Shire for 31.83 billion or approximately $54.5 billion. The deal is expected to close in the fourth quarter of 2014.

AbbVie reported total sales of $18.79 billion in 2013, up 2.2%.


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Stocks

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