:max_bytes(150000):strip_icc()/INV_AbbVieHeadquarters_GettyImages-1970099302-af6587ac4ab24ddc84c6264920dbac84.jpg "AbbVie Boosts Outlook for Two Key Drugs After Beating Profit, Sales Estimates")
Key Takeaways
- AbbVie Inc. reported profit and sales that beat estimates, and raised its guidance on two of its key drugs.
- The pharmaceutical company’s revenue was fueled by immunology treatments Skyrizi and Rinvoq.
- AbbVie said it now anticipates Skyrizi and Rinvoq will bring in sales of $27 billion by 2027.
AbbVie Inc. (ABBV) shares traded near their all-time high Friday as the pharmaceutical company posted better-than-expected results and raised its sales forecast for two of its key medicines.
AbbVie reported fourth-quarter profit of $2.79 per share, off 22.5% from the year-ago quarter. Revenue also fell, by 5.4% to $14.3 billion, but both results exceeded estimates. Revenue from its two key immunology drugs, Skyrizi and Rinvoq, soared 51.9% and 62.9%, respectively, for a total of $3.65 billion.
However, revenue was hurt by a 45.3% decline in U.S. sales of its immunosuppressive treatment, Humira, which was once the world’s biggest-selling drug. The company blamed the drop on copycat medicines, known as biosimilars, that recently have entered the market.
Chief Executive Officer (CEO) Richard Gonzalez said AbbVie is “well-positioned to fully absorb Humira erosion and achieve modest operational revenue growth” this year, with even stronger gains expected to come in the future.
The company told analysts it anticipates 2027 sales of Skyrizi and Rinvoq will be $27 billion, about a $6 billion jump from its previous guidance. Executives explained that the new prediction was based on the growth seen in the two drugs’ combined revenue, and that they are expected to bring in a combined $16 billion in sales this year.
Shares of AbbVie were up 0.9% to $169.17 at about 2:40 p.m. ET, just a fed dollars away from its record high set in April of 2022.