AbbVie (ABBV) TD Cowen 46th Annual Health Care Conference summary

Research and development highlights

• Emphasis on high-efficacy immunology assets and rigorous clinical trial design, including stringent endpoint and patient selection, to differentiate from placebo and standard of care.

• Recent positive data for SKYRIZI subcutaneous induction in Crohn's disease and ongoing phase III trials for Lutikizumab and RINVOQ in hidradenitis suppurativa, with key readouts expected later this year.

• Adoption of single pivotal trial strategies for certain assets, aiming for greater efficiency and faster development timelines.

• Expansion into combination therapies, including TL1A and alpha-4 beta-7 assets with SKYRIZI, and a robust platform study approach in IBD.

• Advancements in neuroscience, oncology, and obesity, with multiple late-stage assets and innovative modalities such as mRNA-based CAR-T and antibody-drug conjugates.

Commercial and market strategy

• Strong positioning of SKYRIZI and RINVOQ in IBD and rheumatoid arthritis, with high capture rates and plans for label expansion by 2027.

• Portfolio approach in hidradenitis suppurativa and IBD, targeting both treatment-naive and biologic failure populations.

• Anticipation of continued growth in under-penetrated markets such as HS and expansion into new therapeutic areas.

• BOTOX remains a multi-billion dollar asset with ongoing legal and regulatory strategies to protect its market position.

• Neuroscience segment highlighted as fastest-growing, with VYALEV, oral CGRPs, and Parkinson’s assets each targeting $5 billion opportunities.

Financial outlook and growth drivers

• Projected high single-digit CAGR through 2029, with clear visibility to growth into the next decade, supported by recent successful navigation of major LOE events.

• Increased R&D investment by several billion dollars since 2022, with over 30 assets and platforms acquired and $8 billion invested in external innovation.

• Pipeline includes next-generation immunology, neuroscience, oncology, and obesity assets, with multiple late-stage readouts expected in 2024.

• Anticipated EPS expansion beyond revenue growth, leveraging SG&A efficiencies and continued business development.

• Management expects market recognition of pipeline breadth and execution to drive valuation multiple expansion over time.