AbbVie ABBV made a groundbreaking announcement today that Robert A. Michael, the current president and chief operating officer, is stepping into the shoes of the chief executive officer (CEO). This baton pass comes as Richard A. Gonzalez, who has been at the helm since AbbVie’s inception in 2013, is set to retire. The company’s creation in 2013 emerged from Abbott Laboratories’ pharmaceutical division divestiture. Come Jul 1, 2024, Gonzalez will pivot to the role of executive chairman of the board of directors.
Effective Jul 1, 2024, Robert Michael will also join the board of directors.
Reflecting on the stock market, AbbVie has seen a 16.6% increase in its stock over the past year, falling short of the industry’s 28.9% rise.
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Robert Michael is no stranger to AbbVie, having been with the company since its inception. He played a pivotal role in setting up the company’s financial planning apparatus, crafting a diversified business strategy, guiding the ship through Humira’s loss of exclusivity, as well as lending support to major M&A activities, which included the acquisition of Allergan in 2020, ImmunoGen, and the impending transaction with Cerevel Therapeutics this year.
Back in December, AbbVie unveiled its definitive agreement to acquire neuroscience drugmaker Cerevel Therapeutics for a whopping $8.7 billion. This latest acquisition is expected to bolster AbbVie’s neuroscience pipeline with Cerevel’s novel pipeline candidates focusing on a spectrum of psychiatric and neurological disorders, ranging from schizophrenia to Parkinson’s disease (PD) and mood disorders.
Generic versions of AbbVie’s flagship immunology drug Humira have been eating into revenues in Europe since 2018. The U.S. market has also witnessed the launch of several biosimilar versions in 2023, further gnawing at U.S. revenues. However, AbbVie has deftly navigated through the loss of exclusivity for Humira by successfully introducing two other blockbuster immunology drugs, Skyrizi and Rinvoq.
AbbVie’s launch of Skyrizi and Rinvoq in the major areas where Humira was utilized, alongside an entirely new indication for atopic dermatitis, has already made a substantial financial impact, generating $7.7 billion in 2022 and a staggering $11.7 billion in 2023. With multiple new indications in the pipeline, the sales of these drugs could surge in upcoming quarters, potentially superseding Humira sales. By 2027, the collective revenues from Skyrizi and Rinvoq are anticipated to surpass the peak revenues achieved by Humira, scaling over a formidable $27 billion.
Zacks Rank and Stocks to Consider
AbbVie currently boasts a Zacks Rank of #3 (Hold).
AbbVie Inc. Price and EPS Surprise
AbbVie Inc. price-eps-surprise | AbbVie Inc. Quote
Some of the better picks in the healthcare sector include Puma Biotechnology PBYI and AC Immune ACIU. Puma Biotechnology holds a Zacks Rank #1 (Strong Buy), while AC Immune secures a Zacks Rank # 2 (Buy). More details on today’s Zacks #1 Rank stocks can be found here.
Over the last 60 days, the estimates for Puma Biotechnology’s 2024 earnings per share have improved from 64 cents to 69 cents. In the past year, PBYI has seen a 56.9% surge in its shares.
Puma Biotechnology managed to surpass estimates in three out of the last four quarters while lagging behind just once, securing a stellar four-quarter average earnings surprise of 76.55%.
Over the past 60 days, the estimates for AC Immune’s 2024 loss per share have narrowed from 58 cents to 54 cents. ACIU’s shares also marked a 40.9% ascent over the last year, with AC Immune delivering a commendable four-quarter average earnings surprise of 6.15%.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. Previous recommendations have surged by +143.0%, +175.9%, +498.3%, and +673.0%.
Most of the stocks in this report are flying under the Wall Street radar, presenting a fantastic opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
AbbVie Inc. (ABBV) : Free Stock Analysis Report
Puma Biotechnology, Inc. (PBYI) : Free Stock Analysis Report
Cerevel Therapeutics Holdings, Inc. (CERE) : Free Stock Analysis Report
AC Immune (ACIU) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
