AbbVie: A Surprisingly Good Show

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Now, pharmaceutical companies. They’re not generally known for being thrilling, are they? A lot of labs, a lot of paperwork, and a frankly alarming amount of Latin in the product descriptions. But AbbVie (ABBV 2.35%) – a name that sounds suspiciously like a Scandinavian detective – actually had a rather good year in 2025. A good year. The stock went up almost 29%, which, in the generally sluggish world of equities, is akin to discovering a previously unknown continent. It handily beat the S&P 500, which, let’s be honest, is often about as exciting as watching paint dry.

There were, naturally, several factors at play. It wasn’t just luck, although a certain amount of serendipity is always welcome in the stock market. It’s a bit like making a decent cup of tea: you need the right ingredients, a bit of skill, and a healthy dose of not messing it up. And AbbVie, it seems, didn’t mess it up.

The Patent Cliff That Wasn’t

Going into 2025, there was a lot of talk about a “patent cliff.” Apparently, this is a real thing in the pharmaceutical world. It sounds like something out of a particularly dramatic nature documentary. The concern was that AbbVie’s blockbuster drug, Humira, was losing patent protection, and this would send the company tumbling into the abyss. It’s a bit like a tightrope walker losing their balance.

But it didn’t happen. Instead, AbbVie managed to pull off a rather clever maneuver. Skyrizi and Rinvoq – two newer drugs – stepped up to the plate and, frankly, knocked it out of the park. Together, they generated a staggering $24 billion in sales. To put that into perspective, that’s more revenue than many entire countries generate in a year. And yes, I did have to look that up. It’s a surprisingly large number.

What’s even more remarkable is that AbbVie isn’t just relying on these three drugs. They’re also doing well in neuroscience, with Vyralar seeing a nearly 7% jump in sales. Apparently, people are increasingly interested in looking after their brains, which, on the whole, seems like a sensible idea. They’ve also been busy acquiring other companies and forging partnerships. It’s a bit like building a really impressive Lego castle. You need a lot of different pieces, and you need to know how to put them together. Capstan Therapeutics and a deal with China’s Simcere Zaiming were notable moves.

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Looking Ahead

The final numbers for 2025 aren’t in yet, but analysts are predicting continued growth. They’re expecting revenue to jump by over 8% to nearly $61 billion. Now, predictions are always a bit dodgy – economists have a famously poor track record – but it’s a reasonably optimistic outlook. They also foresee a significant improvement in net income in 2026, a 43% jump, which is, frankly, rather astonishing.

Even if AbbVie doesn’t quite hit those ambitious targets, it’s still a fundamentally strong company with a solid strategy. It’s not a glamorous industry, and the science is often bewildering, but AbbVie has managed to navigate the complexities and deliver impressive results. For my money – and, as an investor, I do have some – this is one of the better pharmaceutical stocks out there. It’s not going to set the world on fire, but it’s a reliable performer with a good chance of continuing its upward trajectory. And in the often-turbulent world of investing, that’s a rather comforting thought.

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2026-01-29 00:42