BofA Securities increased its price target for AbbVie (ABBV) to $282 from $276, maintaining a Buy rating. This adjustment followed AbbVie's acquisition of Apogee Therapeutics. BofA incorporated Apogee's key drug, zumilokibart, into its financial models for AbbVie. The firm projects zumilokibart could achieve approximately $7.5 billion in nominal peak sales for atopic dermatitis.
The acquisition bolsters AbbVie's immunology pipeline. It also provides a clearer long-term sales outlook. This is particularly relevant as its blockbuster drug Skyrizi loses exclusivity between 2033 and 2035.
The price target revision reflects a higher forward price-to-earnings multiple. This aligns with a recent re-rating across the pharmaceutical sector.