News
John Smaug
- February 02, 2024
AbbVie Inc. (ABBV) has announced its fourth-quarter sales, surpassing analysts' expectations despite facing competition for its leading drug, Humira.
Financial Performance
In the fourth quarter, AbbVie reported a net income of $822 million, or 46 cents per share. This was a significant decrease compared to the year-earlier period, where net income was $2.473 billion, or $1.38 per share. Adjusted earnings per share stood at $2.79, including an adverse impact of 15 cents related to acquired in-process research and development expenses. This figure aligns with the FactSet consensus. Although fourth-quarter revenues of $14.301 billion experienced a 5.4% decline from the previous year, it exceeded the FactSet consensus of $14.025 billion.
Future Outlook
AbbVie provided guidance for the full year of 2024, expecting adjusted earnings per share to range between $11.05 and $11.25. This estimate falls slightly below the FactSet consensus of $11.26. Looking ahead, the company has increased its 2027 sales outlook for arthritis drugs Skyrizi and Rinvoq by over $6 billion, projecting combined sales to exceed $27 billion.
Competition for Humira
AbbVie is currently addressing the loss of exclusivity for its blockbuster autoimmune drug, Humira, as it faces new biosimilar competition. Humira sales experienced a 41% decline from the year earlier, totaling $3.304 billion in the quarter, consistent with the FactSet consensus.
Strong Performance of Skyrizi and Rinvoq
Despite challenges with Humira, sales of Skyrizi increased by 52% year-over-year, while Rinvoq sales grew by an impressive 63%. Revenues from both drugs surpassed expectations set by FactSet consensus.
AbbVie Stays on Course for Strong Revenue Growth
AbbVie reaffirmed its commitment to achieving high single-digit compound annual revenue growth through 2029. CEO Richard Gonzalez stated that the company is well-positioned to absorb the erosion of its key drug, Humira, and expects modest operational revenue growth in 2024. AbbVie plans to return to stronger growth in 2025.
Key Performance Highlights
- Imbruvica, the cancer drug, recorded sales of $903 million for the quarter, representing a 19% decline from the previous year.
- Vraylar, an antipsychotic drug in AbbVie's neuroscience portfolio, saw a significant increase in sales. It generated $789 million, marking a 40% year-on-year growth.
- Qulipta, an FDA-approved drug for the prevention of chronic migraines, generated $114 million in sales during the quarter.
- AbbVie's aesthetics business, which includes popular brands like Botox and Juvederm, experienced a 6.4% growth compared to the previous year, reaching $1.371 billion in sales.
Focus on Future Growth
Market analysts are closely monitoring AbbVie's recently announced deals that are expected to drive growth in the coming years. The company has entered into agreements to acquire ImmunoGen Inc., whose key asset is the antibody-drug conjugate Elahere, and Cerevel Therapeutics Holdings Inc., a neuroscience-focused company.
Despite challenging market conditions, AbbVie shares have performed well, with an 8.1% increase year-to-date. In comparison, the S&P 500 index has gained 2.9% over the same period.
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