AbbVie (ABBV) is “firing at full speed,” an analyst said Friday after the pharmaceutical giant beat Wall Street’s first-quarter expectations and raised its profit outlook. But AbbVie shares plunged.
X
Humira remains AbbVie’s biggest moneymaker, even as the company faces competition from biosimilars in the U.S. and abroad. Humira treats immunological diseases such as arthritis and psoriasis. In the March quarter, Humira’s sales fell 35.9% to $2.27 billion. However, analysts expected a steeper decline to between $2.2 billion and $2.24 billion, Piper Sandler analyst Christopher Raymond said in a report.
“This is despite the significant increase in U.S. biosimilar market share in April,” Leerink Partners analyst David Risinger said in a note to clients.
In particular, newer immunology drugs Skyrizi and Rinvoq are quickly gaining ground, and Skyrizi could soon overtake Humira as AbbVie’s biggest drug. Skyrizi’s revenue rose 47.6% to $2.01 billion, beating expectations of $1.93 billion. Rinvoq brought in $1.09 billion, up 59.3% and surpassing views for $1.04 billion, Piper Sandler’s Raymond said.
But in morning trading on the stock market today, AbbVie shares fell 3.1% to 162.08.
AbbVie shares: Profit and sales exceed expectations
Overall, AbbVie generated $12.31 billion in revenue and earned $2.31 per share, excluding some items. Sales rose by 0.7% on a purely reporting basis and by 1.6% on an operational basis.
According to FactSet, earnings per share fell 6.1%, but beat forecasts by a nickel. Earnings fell 8 cents due to tax charges and milestone expenses, AbbVie said in a news release.
Revenue from AbbVie’s cancer treatments also beat forecasts by a total of $163 million, William Blair analyst Tim Lugo said in a report. This division generated sales of $1.54 billion, up 9%.
But sales of aesthetic products lagged, Piper Sandler’s Raymond said. Botox as a cosmetic treatment brought in $633 million in sales, missing forecasts of $689 million. Raymond asked for an even higher $710 million. Sales of skin-tightening drug Juvederm fell short at $297 million.
Neuroscience sales were mixed. Botox as a therapeutic treatment for migraines, excessive sweating and other conditions came in at $748 million. Raymond said analysts broadly forecast revenue of $765 million. His estimate was a more conservative $710 million. But migraine drugs Ubrelvy and Qulipta led the way, with sales of $203 million and $131 million, respectively.
For the year, AbbVie raised its earnings outlook to $11.13 to $11.33 per share. Stock analysts at AbbVie are forecasting earnings per share of $11.12 and revenue of $54.52 billion.
Follow Allison Gatlin on X, the platform formerly known as Twitter, at @IBD_AGatlin.
YOU MAY ALSO LIKE:
Why Big Pharma is following Novartis’ lead in a $25 billion market
Biogen stock is rising after two notable products crushed sales expectations
Find the best long-term investments with IBD Long-Term Leaders
Check out stocks on the list of top performers near a buy point
IBD Stock of the Day: Learn how to find, track and buy the best stocks