AbbVie raises profit forecast due to strong sales of Humira and positive reception of new drugs.

AbbVie raises profit forecast due to strong sales of Humira and positive reception of new drugs.

AbbVie Beats Analyst Estimates and Raises Profit Forecast

AbbVie, a leading pharmaceutical company, has recently announced its second-quarter earnings, surpassing analysts’ estimates and raising its annual profit forecast. The company’s strong performance is attributed to lower-than-expected sales decline of its blockbuster arthritis drug, Humira, and impressive sales of newer treatments.

Global sales of Humira fell by 25.2%, with revenues reaching $4.01 billion, surpassing analysts’ expectations of $3.94 billion, according to Refinitiv data. This decline in sales has been a cause for concern for investors, as Humira faces stiff competition from biosimilars in the U.S. market. However, the impact of biosimilars on Humira’s market share has been less significant than initially anticipated.

During the second quarter, the only biosimilar available in the U.S., Amjevita from Amgen, did not drive patient switches from Humira as much as expected. Amjevita launched in January with a 5% and 55% discount on Humira’s $6,922-per-month price tag. According to BMO Capital Markets analyst Evan Seigerman, the pricing parity between Humira and its biosimilars may have contributed to the lower-than-expected uptake.

While seven other drugmakers have recently launched their own versions of Humira, three have priced their biosimilars within 5% to 7% of AbbVie’s list price. Two have offered an 85% discount, while two have provided both price options. This competitive landscape should contribute to a further decline in Humira sales, projected to drop by 37% in 2023.

To counteract the expected decrease in Humira revenues, AbbVie is heavily relying on its newer immunology drugs, Skyrizi and Rinvoq, to drive growth. Notably, Skyrizi recorded global sales of $1.88 billion, surpassing expectations of $1.82 billion. Likewise, Rinvoq generated $918 million, exceeding estimates of $897 million. These robust sales figures demonstrate the positive trajectory of AbbVie’s non-Humira business.

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Additionally, AbbVie’s cosmetic use of Botox also contributed to its overall performance. The company recorded $685 million in global sales of Botox for cosmetic purposes, down 1.4%, but slightly higher than analysts’ estimate of $683 million.

“The strong performance was driven predominantly by our non-Humira business, which delivered high single-digit sales growth,” said AbbVie CEO Richard Gonzalez.

Excluding one-off items, AbbVie reported a profit of $2.91 per share, surpassing the average analyst estimate of $2.81. This stellar financial performance led the company to raise its 2023 adjusted profit forecast to $10.90 to $11.10 per share, up from $10.57 to $10.97.

Investors welcomed the positive news, and AbbVie’s shares rose 1.4% to $143.85 in premarket trading.

Conclusion

AbbVie’s outstanding second-quarter results have exceeded expectations, driven by strong sales of newer treatments and a more resilient performance of Humira in the face of biosimilar competition. With a positive outlook for its non-Humira business and an improved profit forecast, AbbVie continues to demonstrate its resilience and growth potential in the pharmaceutical industry.

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