Growing Competition in Hematology, Aesthetics Complicates AbbVie's Post-Humira Landscape, Analyst Says

William Blair has initiated coverage on AbbVie Inc ABBV with a Market Perform rating. 

The analysts Tim Lugo, Lachlan Hanbury-Brown and John Boyle said that while the company was prepared for the launch of Humira biosimilars, the Humira loss of exclusivity is complicated by growing competition in the hematology and aesthetic franchises. 

The ongoing launches of new products like Rinvoq and Skyrizi have been impressive, but more headwinds than tailwinds in the near term are anticipated. 

For the hematology franchise, not only have Imbruvica sales recently slowed, but the launch of Beigene Limited BGNE Brukinsa, which has shown superiority in head-to-head studies, intensifies competitive pressure. 

Imbruvica will likely be one of the first therapies to face pricing discussions with CMS through the recently passed Inflation Reduction Act when the list is announced on September 1. 

Neuroscience is a growth driver, and the eye care franchise is a cash generator that could be refreshed with M&A.

With shares trading neither a rich multiple nor a clear value, William Blair says shares will trade roughly in line with the market as Humira pricing and volume erode over the next 12 months and key franchises face increased competition.

Price Action: ABBV shares are down 1.15% at $141.55 on the last check Tuesday.