AbbVie (NYSE:ABBV) announced a higher annual profit forecast after exceeding analysts’ expectations for Q2 earnings. The company experienced a less severe decline in sales of its blockbuster arthritis drug Humira than anticipated, and its newer treatment offerings showed robust sales.
Global sales of Humira saw a decline of 25.2% to $4.01 billion, outperforming analysts’ estimates of $3.94 billion, according to Refinitiv data. This drop in sales comes amidst the entry of several generic versions of Humira into the U.S. market, which has raised concerns among investors about the drug’s future performance.
During the second quarter, the only biosimilar available in the U.S., Amjevita from Amgen (NASDAQ:AMGN), did not convert as many Humira patients as initially projected since its launch in January. One possible explanation for this lies in Amjevita’s pricing, which was set at a 5% to 55% discount on Humira’s original price of $6,922 per month. As suggested by BMO Capital Markets analyst Evan Seigerman, the lower-than-expected adoption of Amjevita could be due to the modest price difference compared to Humira.
Although seven other drugmakers recently introduced their versions of Humira to the market, three of them have priced their products within 5% to 7% of AbbVie’s price. Two others opted for an 85% discount, while two companies offered discounted and regular prices. Despite this competition, Humira sales are projected to decrease by 37% in 2023. To offset this decline, AbbVie is relying on the growth potential of its newer immunology drugs, Skyrizi and Rinvoq.
Skyrizi performed exceptionally well, achieving global sales of $1.88 billion, surpassing the expected $1.82 billion. Similarly, Rinvoq generated $918 million in sales, exceeding estimates of $897 million. Additionally, AbbVie recorded $685 million in global sales of Botox for cosmetic use, experiencing a marginal decline of 1.4%. However, this figure was slightly higher than the analysts’ estimate of $683 million.
CEO Richard Gonzalez attributed the strong performance primarily to the company’s non-Humira business segment, which exhibited high single-digit sales growth.
Excluding one-time items, AbbVie reported a profit of $2.91 per share, outperforming the average analyst estimate of $2.81. Based on its strong performance, the company has revised its 2023 adjusted profit forecast to $10.90 to $11.10 per share, up from the previous forecast of $10.57 to $10.97.
Following the positive financial results, AbbVie’s stock rose 1.4% to $143.85 in premarket trading.
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Author Faith Yakubu 
