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If You Invested $1000 in AbbVie a Decade Ago, This is How Much It'd Be Worth Now

For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as 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) 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.

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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. In February 2023, AbbVie acquired ImmunoGen which added the latter’s antibody-drug conjugate (ADC) for ovaria cancer, Elahere to AbbVie’s oncology portfolio.
    
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 $54.3 billion for 2023, down 6.4% on a reported basis and 5.9% on an operational basis. Humira, Skyrizi and Rinvoq accounted for 26.5%, 14.3% and 7.3%, respectively, of AbbVie’s total revenues in 2023. Imbruvica accounted for 6.6%, while Botox (cosmetic and therapeutic) accounted for 10.4% of AbbVie’s total revenues in 2023.

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.

A $1000 investment made in June 2014 would be worth $3,196.81, or a 219.68% gain, as of June 24, 2024, according to our calculations. Investors should note that this return excludes dividends but includes price increases.

In comparison, the S&P 500 gained 178.40% and the price of gold went up 69.14% over the same time frame.

Analysts are anticipating more upside for ABBV.

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 approvals in new indications, which should support top-line growth in the next few years. AbbVie has several early/mid-stage candidates that have the potential to drive long-term growth. Boosted by its new product launches, AbbVie expects to return to robust revenue growth in 2025. The recent ImmunoGen and Cerevel (pending) acquisitions will strengthen its pipeline. However, the company faces several near-term headwinds like Humira’s biosimilar erosion, increasing competitive pressure on Imbruvica and decreased demand for fillers in international markets. AbbVie’s shares have underperformed the industry this year so far.

The stock has jumped 8.49% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 9 higher, for fiscal 2024; the consensus estimate has moved up as well.

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