AbbVie Inc (NYSE:ABBV) stock rose 1.22% (As on July 28, 1:46:40 AM UTC-4, Source: Google Finance) after the company trimmed its 2023 view for declining sales of its flagship arthritis drug Humira despite new competition, as favorable positions on insurance drug coverage lists helped it continue to reach U.S. patients. Global Humira sales tumbled 25.2% to $4.01 billion for the second quarter, but topped diminished Wall Street estimates of $3.94 billion, according to Refinitiv data. Out of the seven other drugmakers that launched Humira close copies this month, three kept their list prices within 5% to 7% of AbbVie’s, while two priced at an 85% discount and two offered both types of prices. AbbVie is leaning on newer immunology drugs Skyrizi and Rinvoq to make up for the expected drop in Humira sales. Skyrizi recorded global sales of $1.88 billion, beating analyst expectations of $1.82 billion, while Rinvoq sales of $918 million topped estimates of $897 million.
ABBV in the second quarter of FY 23 has reported the adjusted earnings per share of $2.91, beating the analysts’ estimates for the adjusted earnings per share of $2.79, according to the Zacks Consensus Estimate. The company had reported 4.9 percent decline in the adjusted revenue to $13.87 billion in the second quarter of FY 23, beating the analysts’ estimates for revenue by 2.54%. The adjusted gross margin ratio was 84.7 percent. The adjusted R&D expense was 12.5 percent of net revenues, reflecting funding actions supporting all stages of the pipeline. The adjusted operating margin was 47.0 percent.
The U.S. drugmaker now expects Humira sales to fall by 35% instead of 37%. AbbVie raised its annual profit forecast to $10.90 to $11.10 per share after beating analysts’ estimates for second-quarter earnings on a lower-than-expected fall in Humira sales and strong demand for newer treatments.
The drugmaker increased its 2023 Skyrizi sales forecast by $200 million to $7.6 billion. AbbVie also raised its forecast for 2023 neuroscience drug sales by $300 million to $7.7 billion. The company recorded $685 million in global sales of Botox for cosmetic use, down 1.4%, but slightly higher than analysts’ estimate of $683 million. An AbbVie executive said the company expects international aesthetics to see high single-digit growth in 2023.
On the other hand, ABBV and Calibr announced an expanded strategic collaboration to advance several innovative preclinical and early-stage clinical assets across AbbVie’s core therapeutic areas including immunology, oncology, neuroscience and other areas of interest.