AbbVie Raises Profit Outlook as Immunology Drugs Drive Sales

AbbVie, the biopharmaceutical company (ticker: ABBV), has increased its profit forecast for the year, thanks to the rising sales of its newer immunology drugs. The company now anticipates adjusted earnings for 2023 to fall within the range of $10.90 to $11.10 per share, up from its previous estimate of $10.57 to $10.97 a share.

Despite experiencing a 25% year-over-year decline in quarterly revenue for its flagship arthritis drug, Humira, AbbVie remains optimistic. Humira has been facing challenges due to the expiration of its patent protection in the U.S. and Europe, leading to decreased sales. However, the revenue generated by Skyriz and Rinvoq, AbbVie's newer immunology drugs, has more than compensated for Humira's decline. Skyriz sales saw a significant increase of 50% in the June quarter compared to the previous year, reaching $1.9 billion, while Rinvoq revenue rose by 55% to almost $1 billion. Both Skyriz and Rinvoq sales have shown consistent growth since 2020.

In the second quarter, AbbVie reported an adjusted profit of $2.91 per share, surpassing the average analyst estimate of $2.83. The company's revenue amounted to nearly $14 billion, exceeding analysts' expectations of $13.5 billion.

CEO Richard Gonzalez attributed the strong performance to AbbVie's non-Humira business, which achieved high single-digit sales growth in line with their long-term outlook.

Following this positive news, shares of AbbVie surged by 5.3% on Thursday, reaching $159.40. This increase marked the largest percentage rise since November 4, 2020, when the company saw a 7.4% gain.