AbbVie Inc(NYSE: ABBV) total net revenues rose 7.6% yoy to $6.944 billion in the second quarter of 2017 while adjusted net revenues enhanced 8.9 yoy. Global HUMIRA sales rose 13.7% yoy during the period while U.S., HUMIRA sales rose 18%. HUMIRA international sales rose 9.1% without the 3.6% unfavorable impact from foreign exchange. Global IMBRUVICA net revenues reached $626 million, wherein U.S. sales accounted a major part which contributed $528 million.
Gross margin ratio on a GAAP basis reached 78% during the quarter while the adjusted gross margin ratio reached 82.3 percent. Research and development expense was 17.6% of net revenues while operating margin reached 38.5 percent during the second quarter, on a GAAP basis. Adjusted diluted EPS, (without intangible asset amortization expense and other specified items) rose 12.7% yoy to $1.42.
The group gave favorable top-line results from a Phase 3 clinical trial of upadacitinib (ABT-494), for moderate to severe rheumatoid arthritis. Results from the SELECT-NEXT study, reported that post twelve weeks of treatment, both doses of upadacitinib (15 mg and 30 mg) was on track with the study’s primary endpoints of ACR20 and low disease activity. Major secondary endpoints were also attained and included ACR50, ACR70 and clinical remission. The group reported positive results from CELEST, a Phase 2 study evaluating upadacitinib in adult patients with moderately to severely active Crohn’s disease. The CELEST study showed that more patients achieved clinical remission and endoscopic remission after induction therapy with upadacitinib versus placebo. The European Medicines Agency (EMA) has granted a positive opinion showing marketing authorization of MAVIRET (glecaprevir/pibrentasvir, or G/P), an investigational, pan-genotypic treatment for adults with chronic HCV infection.
AbbVie is confirming its GAAP diluted EPS guidance for the full-year 2017 of $4.55 to $4.65. AbbVie expects to deliver adjusted diluted EPS for the full-year 2017 of $5.44 to $5.54, representing growth of 13.9 percent at the mid-point. The company’s 2017 adjusted diluted EPS guidance excludes $0.89 per share of intangible asset amortization expense and other specified items.
On the other hand, AbbVie stock corrected over 2.5% (As of 10:53AM EDT on July 28th, 2017; Source: Google finance) this morning as investors must be expecting a better performance from the group. But the stock rallied over 16.6% in the last six months while has a target price of $79.17, which is further 12% upside, as per tioranks.com