Neuroscience Is Becoming AbbVie's Quiet Powerhouse -- and Management Now Sees $12.7 Billion in Sales This Year

For years, AbbVie (NYSE: ABBV) was known primarily for immunology. Humira built the company into a pharmaceutical giant, and newer blockbusters Skyrizi and Rinvoq have helped replace much of the revenue lost to biosimilar competition. Now the company's got another iron in the fire -- neuroscience -- and it's no slouch.

Management now expects its neuroscience portfolio to generate approximately $12.7 billion in revenue during 2026, raising guidance by another $100 million after a strong first half of the year. That's a remarkable figure when you consider that the portfolio generated $10.8 billion last year and continues to grow at a double-digit pace.

Growth is coming from multiple products

Unlike some pharmaceutical franchises that depend on a single blockbuster, AbbVie's neuroscience business has become increasingly diversified. During the second quarter, neuroscience revenue climbed 20.3% year over year to $3.23 billion. Schizophrenia and bipolar disorder drug Vraylar generated $1.07 billion, therapeutic Botox contributed $1.04 billion, and migraine drugs Ubrelvy and Qulipta combined for $742 million in quarterly sales. Parkinson's disease therapy Vyalev added another $256 million.

Migraine remains one of the biggest opportunities

The fastest-growing part of AbbVie's neuroscience business may be migraine. Combined sales rose 22.6% year over year as Ubrelvy and Qulipta continued gaining traction with physicians addressing both acute migraine attacks and migraine prevention.

Migraine affects an estimated 1.2 billion people worldwide, yet many patients remain untreated or cycle through multiple therapies before finding one that works. That leaves considerable room for continued growth, even in an increasingly competitive market.

Meanwhile, therapeutic Botox remains one of the most durable assets in AbbVie's portfolio. Beyond its cosmetic applications, Botox is approved for chronic migraine, cervical dystonia, spasticity, overactive bladder, and several other neurological disorders, giving the product multiple avenues for sustained demand.

Neuroscience helps diversify AbbVie

The growth of neuroscience is also reducing AbbVie's dependence on any single therapeutic area. Q2 immunology revenue still reached $8.79 billion, driven by Skyrizi and Rinvoq. But neuroscience is becoming a much larger percentage of the company's total business, helping offset continued declines in Humira while balancing slower growth in oncology and aesthetics.

That diversification is integral to AbbVie's long-term success. Drug development is inherently unpredictable. Patent expirations, competitive launches, and clinical setbacks are unavoidable. A broader portfolio makes it easier for pharmaceutical companies to absorb those risks without relying too heavily on one product.

The next generation of neuromedicine

AbbVie is also staking an early claim to promising psychedelics-based medicines, which are starting to gain considerable attention in the world of neuroscience. In fact, late last year, AbbVie made a major bet on the space by acquiring Gilgamesh Pharmaceuticals' lead drug candidate, bretisilocin (ABBV-2505), for $906 million upfront, with another $300 million tied to future development milestones.

The experimental treatment is being developed for major depressive disorder and is designed to deliver the antidepressant benefits associated with psychedelic compounds while shortening the psychoactive experience, potentially making it easier to use in a clinical setting. The drug is still in Phase 2 testing, but companies like AbbVie don't spend more than $1.2 billion on early-stage assets unless they believe the opportunity could eventually be much larger.

For AbbVie, it's another sign that neuroscience isn't just about growing today's blockbuster drugs -- it's also about building the next generation of psychiatric medicines.

Image source: Getty Images.

AbbVie's second major growth platform

AbbVie is unlikely to be viewed as a neuroscience company first. Immunology will likely remain its largest franchise for years to come. However, the numbers suggest its neuroscience division deserves far more attention than it receives.

As mentioned earlier, management now expects $12.7 billion in neuroscience revenue this year, supported by growth across Vraylar, therapeutic Botox, Ubrelvy, Qulipta, and Vyalev. Worth noting: Those products also address different diseases, reducing dependence on any single medicine while creating multiple opportunities for future expansion.

As Humira fades further into the background, it's understandable to focus on Skyrizi and Rinvoq. Together, they're driving much of AbbVie's headline growth. But neuroscience is increasingly becoming the company's second major growth platform. If current trends continue, it could play an even larger role in AbbVie's earnings and cash flow over the next several years.

Jeff Siegel works for JLS Fund, which invested in Gilgamesh prior to AbbVie's acquisition of bretisilocin. Jeff Siegel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AbbVie. The Motley Fool has a disclosure policy.