A lot has changed for AbbVie (ABBV 1.03%) over the past five years. Notably, the biotech company's Humira, once its biggest growth driver and the world's best-selling drug, lost patent exclusivity in the U.S. in 2023. Despite that setback, AbbVie has produced solid returns over the last half a decade.
But can the drugmaker maintain that momentum through 2031? Let's find out how things might unfold for AbbVie over the next five years.
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Same growth drivers and new products
AbbVie has performed relatively well despite the Humira patent cliff, thanks to two other immunology medicines: Skyrizi and Rinvoq. These products should drive solid top-line growth through the end of the decade and beyond. Neither will lose patent protection by 2031, and thanks to their approvals across several inflammatory diseases and potential label expansions, their medium-term prospects look bright.
Rinvoq, for instance, could soon earn new indications in treating alopecia areata and vitiligo, new markets that will help boost its sales. Beyond these two main growth drivers, though, AbbVie could also make meaningful progress with newer approvals and late-stage pipeline candidates. Last year, the company received approval to market Emrelis, a medicine for non-small cell lung cancer.
That aligns with the company's strategy to aggressively expand in oncology (it has historically dominated in immunology). And it boasts several other candidates that could earn approval in the next five years. One of them, ABBV-400, is currently undergoing phase 3 studies in colorectal cancer.
NYSE: ABBV
Key Data Points
AbbVie's pipeline features candidates across other therapeutic areas, including neuroscience and eye care. The company even entered into a licensing agreement to develop a weight loss medicine. By 2031, AbbVie's portfolio of approved drugs should look more diversified, although its immunology lineup will still be the main growth franchise. And importantly, the company does not expect a major loss of patent exclusivity through the end of the decade.
An attractive dividend stock
AbbVie will face some challenges through 2031. For instance, the company's cancer drug Imbruvica was targeted by the government for price negotiation -- negotiated prices kicked in this year. The good news is that Imbruvica's sales were already declining and no longer featured prominently in AbbVie's growth plans. The market is also worried that Humira remains AbbVie's third-best-selling drug three years after its patent cliff.
That, too, shouldn't be too much of a problem as the drugmaker launches new drugs. I believe AbbVie will deliver solid returns through 2031 and is an especially attractive pick for income seekers, given its status as a Dividend King (a corporation with at least 50 consecutive years of annual dividend increases).
