- Morgan Stanley has welcomed the recent sales guidance issued by AbbVie (ABBV -0.4%) for Rinvoq (upadacitinib) and Skyrizi (risankizumab).
In a press release on Tuesday ahead of its presentation at the ongoing J.P. Morgan Healthcare Conference, the North Chicago, Illinois-based biotech reaffirmed its previous revenue guidance of more than $15B risk-adjusted sales for the treatments in 2025.
- While lowering the Rinvoq sales guidance to over $7.5B from more than $8.5B previously, the company has raised the Skyrizi sales guidance to more than $7.5B from over $7.0B, the analysts led by Matthew Harrison point out.
- “The announcement is a positive for ABBV because it removes the last overhang where investors previously believed that mgt. would need to lower its earlier guidance given JAK label safety concern,” they wrote.
- The update suggests management's expectations over a potential FDA approval for Rinvoq in atopic dermatitis (AD), the team added.
- Morgan Stanley has an Overweight rating on AbbVie (NYSE:ABBV) with a price target of $124 per share.
- Meanwhile, commenting on AbbVie’s sales update, BMO analyst Gary Nachman argues that the “bullish update at JPM reaffirmed confidence in the long-term growth prospects for the company post the Humira LOE next year.”
- Nachman also notes AbbVie management “stressed that solid growth is expected with Immunology franchise well beyond 2025 (should ultimately exceed Humira’s peak).” BMO, with an Outperform rating on the stock, has raised the price target to $153 from $134 per share in reaction.
- Skyrizi is an IL-23 inhibitor currently approved for plaque psoriasis. Rheumatoid arthritis therapy, Rinvoq belongs to JAK inhibitors, a drug category that has recently come under FDA scrutiny over safety concerns.