AbbVie Shares Gain Momentum on Strategic Oncology Move and Institutional Backing

The pharmaceutical giant AbbVie has opened the year with notable strength, propelled by a major licensing agreement and increased conviction from large-scale investors. Market attention is firmly fixed on the company's strategic efforts to bolster its oncology drug portfolio.

AbbVie's financial performance demonstrates a successful navigation past the exclusivity loss of its blockbuster drug Humira. For the third quarter of 2025, the company reported a 9.1% revenue increase to $15.78 billion. This growth was largely driven by strong demand for its immunology products, Skyrizi and Rinvoq.

Management has reaffirmed its full-year 2025 adjusted earnings per share guidance, projecting a range between $10.61 and $10.65. Looking further ahead, market consensus anticipates a significant jump to approximately $14.42 per share for 2026. The company also continues its commitment to returning capital to shareholders, maintaining a reliable dividend policy with a quarterly payout of $1.73 per share.

A Billion-Dollar Bet to Expand Cancer Treatment Capabilities

A key catalyst for the recent positive sentiment is a strategic partnership with the Chinese biotech firm Zelgen. Through this deal, AbbVie secures exclusive rights to commercialize the T-cell activator Alvetamig (ZG-006) outside of China, targeting the DLL3 protein in solid tumors. The total potential value of the agreement reaches $1.1 billion.

An upfront payment of $100 million has been made, with the remaining $1.075 billion contingent upon the achievement of specific development and regulatory milestones. This move is seen as a direct effort to expand AbbVie's pipeline in the solid tumor oncology space, an area of intense research and commercial competition.

Should investors sell immediately? Or is it worth buying AbbVie?

Institutional Investors Increase Their Stakes

Concurrent with the strategic deal, recent regulatory filings show growing interest from institutional investors. CWA Asset Management Group boosted its position in AbbVie by 39.4%, bringing its holding to 71,640 shares. Similarly, Asset Management One increased its stake by 1.7%, accumulating over 870,000 shares valued at roughly $201 million.

This institutional vote of confidence is echoed by analyst commentary. While the consensus rating among 28 covering analysts stands at a "Moderate Buy," price targets reflect optimism. Bank of America has set a target of $251 per share, and Scotiabank presents an even more bullish outlook with a $280 target.

Near-Term Catalysts and Technical Positioning

Investors can expect further strategic insights at the upcoming J.P. Morgan Healthcare Conference beginning January 12th, where management will likely detail the integration of recent acquisitions ImmunoGen and Cerevel Therapeutics. Additionally, a significant regulatory milestone is anticipated in the first half of 2026, with the U.S. FDA expected to rule on the approval of Tavapadon for Parkinson's disease.

From a chart perspective, the stock is consolidating near its yearly highs. A sustained breakout above the $230 level could pave the way toward the analyst consensus price target of $245.84, with technical support currently seen around $220.