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Here's How Much You'd Have If You Invested $1000 in AbbVie a Decade Ago
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How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in AbbVie (ABBV - Free Report) ten years ago? It may not have been easy to hold on to ABBV for all that time, but if you did, how much would your investment be worth today?
AbbVie's Business In-Depth
With that in mind, let's take a look at AbbVie's main business drivers.
North Chicago, IL-based AbbVie has become one of the top-most pharma companies after it acquired Botox maker Allergan in a cash-and-stock deal for $63 billion in May 2020. The deal has transformed AbbVie’s portfolio by lowering its dependence on Humira, its flagship product, which has lost patent protection in Europe as well as the United States. AbbVie has one of the most popular cancer drugs in its portfolio, Imbruvica. Its newest immunology drugs Skyrizi (risankizumab) and Rinvoq (upadacitinib) position it well for long-term growth.
AbbVie came into existence on Jan 1, 2013, after Abbott Laboratories divested its pharmaceutical division. In May 2020, AbbVie acquired Allergan for about $20 billion. In June 2016, AbbVie acquired cancer drugmaker, Stemcentrx in a cash-and-stock deal worth $5.8 billion.
AbbVie enjoys leadership positions in key therapeutic areas including immunology, hematologic oncology, neuroscience, aesthetics and eye care.
Humira is approved for several autoimmune diseases like rheumatoid arthritis (RA), active psoriatic arthritis, active ankylosing spondylitis, Crohn’s disease and others. Imbruvica (hematological cancers) became part of the company’s portfolio following the Pharmacyclics acquisition.
Other key drugs include Venclexta (venetoclax) (hematological malignancies), Botox Cosmetic (aesthetic use), Botox Therapeutics (neuroscience indications), Vraylar (schizophrenia and bipolar I disorder), Skyrizi (plaque psoriasis, psoriatic arthritis and Crohn’s disease) and Rinvoq (RA, psoriatic arthritis, ankylosing spondylitis, atopic dermatitis, axial spondyloarthropathy, Crohn’s disease and ulcerative colitis). The company also has partnerships with companies like Roche and J&J.
AbbVie reported total sales of $58.1 billion for 2022, up 3.3% on a reported basis and 5.1% on an operational basis. Humira and Skyrizi accounted for 36.6% and 8.9%, respectively, of AbbVie’s total revenues in 2022. Imbruvica accounted for 7.9% while Botox (cosmetic and therapeutic) accounted for 9.2% of AbbVie’s total revenues in 2022.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in AbbVie a decade ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in December 2013 would be worth $2,946.34, or a gain of 194.63%, as of December 14, 2023, and this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 165.14% and gold's return of 57.17% over the same time frame.
Analysts are forecasting more upside for ABBV too.
AbbVie has several new drugs in its portfolio with the potential to drive the top line and make up for lost Humira revenues. Newer products, Skyrizi and Rinvoq, are performing extremely well, bolstered by approval in new indications, which should support top-line growth in the next few years. The company has several early/mid-stage candidates that have the potential to drive long-term growth. Though revenues are expected to decline in 2023, AbbVie expects to return to robust sales growth in 2025. However, the company faces several near-term headwinds like Humira loss of exclusivity, increasing competitive pressure on Imbruvica and economic pressure on Juvederm sales. AbbVie’s shares have underperformed the industry so far this year.
Over the past four weeks, shares have rallied 12.14%, and there have been 10 higher earnings estimate revisions in the past two months for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.
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Here's How Much You'd Have If You Invested $1000 in AbbVie a Decade Ago
How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in AbbVie (ABBV - Free Report) ten years ago? It may not have been easy to hold on to ABBV for all that time, but if you did, how much would your investment be worth today?
AbbVie's Business In-Depth
With that in mind, let's take a look at AbbVie's main business drivers.
North Chicago, IL-based AbbVie has become one of the top-most pharma companies after it acquired Botox maker Allergan in a cash-and-stock deal for $63 billion in May 2020. The deal has transformed AbbVie’s portfolio by lowering its dependence on Humira, its flagship product, which has lost patent protection in Europe as well as the United States. AbbVie has one of the most popular cancer drugs in its portfolio, Imbruvica. Its newest immunology drugs Skyrizi (risankizumab) and Rinvoq (upadacitinib) position it well for long-term growth.
AbbVie came into existence on Jan 1, 2013, after Abbott Laboratories divested its pharmaceutical division. In May 2020, AbbVie acquired Allergan for about $20 billion. In June 2016, AbbVie acquired cancer drugmaker, Stemcentrx in a cash-and-stock deal worth $5.8 billion.
AbbVie enjoys leadership positions in key therapeutic areas including immunology, hematologic oncology, neuroscience, aesthetics and eye care.
Humira is approved for several autoimmune diseases like rheumatoid arthritis (RA), active psoriatic arthritis, active ankylosing spondylitis, Crohn’s disease and others. Imbruvica (hematological cancers) became part of the company’s portfolio following the Pharmacyclics acquisition.
Other key drugs include Venclexta (venetoclax) (hematological malignancies), Botox Cosmetic (aesthetic use), Botox Therapeutics (neuroscience indications), Vraylar (schizophrenia and bipolar I disorder), Skyrizi (plaque psoriasis, psoriatic arthritis and Crohn’s disease) and Rinvoq (RA, psoriatic arthritis, ankylosing spondylitis, atopic dermatitis, axial spondyloarthropathy, Crohn’s disease and ulcerative colitis). The company also has partnerships with companies like Roche and J&J.
AbbVie reported total sales of $58.1 billion for 2022, up 3.3% on a reported basis and 5.1% on an operational basis. Humira and Skyrizi accounted for 36.6% and 8.9%, respectively, of AbbVie’s total revenues in 2022. Imbruvica accounted for 7.9% while Botox (cosmetic and therapeutic) accounted for 9.2% of AbbVie’s total revenues in 2022.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in AbbVie a decade ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in December 2013 would be worth $2,946.34, or a gain of 194.63%, as of December 14, 2023, and this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 165.14% and gold's return of 57.17% over the same time frame.
Analysts are forecasting more upside for ABBV too.
AbbVie has several new drugs in its portfolio with the potential to drive the top line and make up for lost Humira revenues. Newer products, Skyrizi and Rinvoq, are performing extremely well, bolstered by approval in new indications, which should support top-line growth in the next few years. The company has several early/mid-stage candidates that have the potential to drive long-term growth. Though revenues are expected to decline in 2023, AbbVie expects to return to robust sales growth in 2025. However, the company faces several near-term headwinds like Humira loss of exclusivity, increasing competitive pressure on Imbruvica and economic pressure on Juvederm sales. AbbVie’s shares have underperformed the industry so far this year.
Over the past four weeks, shares have rallied 12.14%, and there have been 10 higher earnings estimate revisions in the past two months for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.