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AbbVie Inc. (ABBV - Free Report) reported adjusted earnings of $2.46 per share for the first quarter of 2023, beating the Zacks Consensus Estimate and our estimate, which stood at $2.44 and $2.40, respectively. The reported earnings also exceeded the guidance of $2.31-$2.41. Earnings declined 22.2% year over year.
ABBV’s revenues of $12.23 billion beat the Zacks Consensus Estimate and our estimate of $12.08 billion and $12.03 billion, respectively. Sales declined 9.7% year over year on a reported basis and 8.3% on an operational basis. The downside was caused by lower sales of Humira, Imbruvica and Juvederm. This decline was partially offset by the rise in product sales of key drugs like Rinvoq, Skyrizi, Botox and Vraylar.
All growth rates mentioned below are on a year-on-year basis and at constant exchange rates (CER).
Quarter in Detail
In immunology, AbbVie’s flagship drug Humira recorded a year-over-year sales decline of 24.3% to $3.54 billion on an operational basis. Sales in the United States declined 26.1% to $2.95 billion, while ex-U.S. market sales were down 14.8% on an operational basis to $593.0 million. The drug’s sales beat both the Zacks Consensus Estimate and our model estimates that were pegged at $3.44 billion and $3.45 billion, respectively.
This substantial decline in Humira sales was due to the drug’s recent loss of exclusivity in the United States. Earlier this January, Amgen (AMGN - Free Report) announced the launch of the first Humira biosimilar in the United States. The biosimilar is being marketed by Amgen under the trade name Amjevita. Like Amgen, several other companies like Biogen, Boehringer Ingelheim, Novartis (NVS - Free Report) and Pfizer have received FDA approvals for their own Humira biosimilars, many of which are expected to be launched at various times this year per agreements with AbbVie. Last month, Novartis, through its Sandoz division, announced that the FDA approved its Humira biosimilar, which will be marketed under the trade name Hyrimoz. The Novartis division intends to market the drug in the United States from Jul 1, 2023. Humira had previously lost exclusivity in Europe in 2018.
Net revenues recorded from Skyrizi in the first quarter were $1.36 billion, up 46.3% on an operational basis year over year. This rise in sales is due to label expansions to the drug to include new patient populations in the last few quarters. Skyrizi sales missed the Zacks Consensus Estimate and our model estimates of $1.45 billion and $1.43 billion, respectively.
During the quarter, Rinvoq registered sales of $686 million, up 51.2% year over year on an operational basis. Rinvoq’s U.S. sales rose 44.4% year over year during the quarter, while ex-U.S. sales of the drug surged 64.9%. The drug’s sales beat the Zacks Consensus Estimate of $682 million but missed out on our estimate of $699 million.
Sales from the neuroscience portfolio increased 15.0% on an operational basis to $1.70 billion, driven by higher sales of Botox Therapeutic and Vraylar. The new migraine drug Qulipta also contributed to sales growth. Neuroscience sales figures beat the Zacks Consensus Estimate and our model estimate of $1.52 billion and $1.55 billion, respectively.
While Botox Therapeutic sales rose 18.7% to $719 million, sales of Vraylar increased 31.3% to $561 million. Sales of AbbVie’s oral migraine drug Ubrelvy were $152 million, up 10.0% year over year.
The recently launched Qulipta generated $66 million in product revenues compared to $52 million in fourth-quarter 2022.
AbbVie’s oncology/hematology (including Imbruvica and Venclexta) sales declined 12.9% on an operational basis to $1.42 billion in the quarter, as growth of Venclexta sales, was more than offset by lower U.S. sales of Imbruvica. The oncology/hematology sales figure missed our model estimate of $1.45 billion.
First-quarter net revenues from Imbruvica were $878 million, down 25.2% year over year. AbbVie markets the drug in partnership with Johnson & Johnson (JNJ - Free Report) . The company shares international profits earned from Imbruvica with J&J.
U.S. sales of J&J-partnered Imbruvica grossed $638 million, down 27.0% from the year-ago figure. Sales of the J&J-partnered Imbruvica declined amid rising competition from novel oral treatments in the United States. AbbVie’s share of profit from the international sales of the J&J-partnered drug declined 19.7% to $240 million.
AbbVie’s leukemia drug Venclexta generated revenues of $538 million in the reported quarter, reflecting 17.5% year-over-year growth.
AbbVie’s aesthetics portfolio sales were down 2.0% on an operational basis to $1.30 billion. Lower sales of Juvederm and other aesthetic drugs more than offset the growth in Botox Cosmetic product sales. Sales of Botox Cosmetic rose 5.8% on an operational basis to $659 million, while Juvéderm’s sales fell 7.4% on an operational basis to $355 million.
Eye care portfolio sales declined 19.0% on an operational basis to $608 million. Sales of Restasis, a key drug in the portfolio, decreased 62.6% year over year to $92 million.
Shares of AbbVie were down 6.0% in pre-market trading on Apr 27 likely due to a softer sales performance of Skyrizi. In the year so far, AbbVie’s shares have gained 0.1% compared with the industry’s 1.5% rise.
Image Source: Zacks Investment Research
Cost Discussion
Adjusted SG&A expenses rose 4.6% to $2.98 billion, while adjusted R&D expenses were $1.66 billion in the first quarter, up 12% year over year. The adjusted operating margin represented 45.0% of sales.
Raises 2023 Guidance
AbbVie raised its earnings per share (EPS) guidance for 2023. The company now expects adjusted EPS in the range of $10.72-$11.12, a 10-cent rise in both the upper and lower limits of the previously provided EPS guidance of $10.62-$11.02.
Image: Shutterstock
AbbVie (ABBV) Q1 Earnings Beat, Skyrizi Sales Underperform
AbbVie Inc. (ABBV - Free Report) reported adjusted earnings of $2.46 per share for the first quarter of 2023, beating the Zacks Consensus Estimate and our estimate, which stood at $2.44 and $2.40, respectively. The reported earnings also exceeded the guidance of $2.31-$2.41. Earnings declined 22.2% year over year.
ABBV’s revenues of $12.23 billion beat the Zacks Consensus Estimate and our estimate of $12.08 billion and $12.03 billion, respectively. Sales declined 9.7% year over year on a reported basis and 8.3% on an operational basis. The downside was caused by lower sales of Humira, Imbruvica and Juvederm. This decline was partially offset by the rise in product sales of key drugs like Rinvoq, Skyrizi, Botox and Vraylar.
All growth rates mentioned below are on a year-on-year basis and at constant exchange rates (CER).
Quarter in Detail
In immunology, AbbVie’s flagship drug Humira recorded a year-over-year sales decline of 24.3% to $3.54 billion on an operational basis. Sales in the United States declined 26.1% to $2.95 billion, while ex-U.S. market sales were down 14.8% on an operational basis to $593.0 million. The drug’s sales beat both the Zacks Consensus Estimate and our model estimates that were pegged at $3.44 billion and $3.45 billion, respectively.
This substantial decline in Humira sales was due to the drug’s recent loss of exclusivity in the United States. Earlier this January, Amgen (AMGN - Free Report) announced the launch of the first Humira biosimilar in the United States. The biosimilar is being marketed by Amgen under the trade name Amjevita. Like Amgen, several other companies like Biogen, Boehringer Ingelheim, Novartis (NVS - Free Report) and Pfizer have received FDA approvals for their own Humira biosimilars, many of which are expected to be launched at various times this year per agreements with AbbVie. Last month, Novartis, through its Sandoz division, announced that the FDA approved its Humira biosimilar, which will be marketed under the trade name Hyrimoz. The Novartis division intends to market the drug in the United States from Jul 1, 2023. Humira had previously lost exclusivity in Europe in 2018.
Net revenues recorded from Skyrizi in the first quarter were $1.36 billion, up 46.3% on an operational basis year over year. This rise in sales is due to label expansions to the drug to include new patient populations in the last few quarters. Skyrizi sales missed the Zacks Consensus Estimate and our model estimates of $1.45 billion and $1.43 billion, respectively.
During the quarter, Rinvoq registered sales of $686 million, up 51.2% year over year on an operational basis. Rinvoq’s U.S. sales rose 44.4% year over year during the quarter, while ex-U.S. sales of the drug surged 64.9%. The drug’s sales beat the Zacks Consensus Estimate of $682 million but missed out on our estimate of $699 million.
Sales from the neuroscience portfolio increased 15.0% on an operational basis to $1.70 billion, driven by higher sales of Botox Therapeutic and Vraylar. The new migraine drug Qulipta also contributed to sales growth. Neuroscience sales figures beat the Zacks Consensus Estimate and our model estimate of $1.52 billion and $1.55 billion, respectively.
While Botox Therapeutic sales rose 18.7% to $719 million, sales of Vraylar increased 31.3% to $561 million. Sales of AbbVie’s oral migraine drug Ubrelvy were $152 million, up 10.0% year over year.
The recently launched Qulipta generated $66 million in product revenues compared to $52 million in fourth-quarter 2022.
AbbVie’s oncology/hematology (including Imbruvica and Venclexta) sales declined 12.9% on an operational basis to $1.42 billion in the quarter, as growth of Venclexta sales, was more than offset by lower U.S. sales of Imbruvica. The oncology/hematology sales figure missed our model estimate of $1.45 billion.
First-quarter net revenues from Imbruvica were $878 million, down 25.2% year over year. AbbVie markets the drug in partnership with Johnson & Johnson (JNJ - Free Report) . The company shares international profits earned from Imbruvica with J&J.
U.S. sales of J&J-partnered Imbruvica grossed $638 million, down 27.0% from the year-ago figure. Sales of the J&J-partnered Imbruvica declined amid rising competition from novel oral treatments in the United States. AbbVie’s share of profit from the international sales of the J&J-partnered drug declined 19.7% to $240 million.
AbbVie’s leukemia drug Venclexta generated revenues of $538 million in the reported quarter, reflecting 17.5% year-over-year growth.
AbbVie’s aesthetics portfolio sales were down 2.0% on an operational basis to $1.30 billion. Lower sales of Juvederm and other aesthetic drugs more than offset the growth in Botox Cosmetic product sales. Sales of Botox Cosmetic rose 5.8% on an operational basis to $659 million, while Juvéderm’s sales fell 7.4% on an operational basis to $355 million.
Eye care portfolio sales declined 19.0% on an operational basis to $608 million. Sales of Restasis, a key drug in the portfolio, decreased 62.6% year over year to $92 million.
Shares of AbbVie were down 6.0% in pre-market trading on Apr 27 likely due to a softer sales performance of Skyrizi. In the year so far, AbbVie’s shares have gained 0.1% compared with the industry’s 1.5% rise.
Image Source: Zacks Investment Research
Cost Discussion
Adjusted SG&A expenses rose 4.6% to $2.98 billion, while adjusted R&D expenses were $1.66 billion in the first quarter, up 12% year over year. The adjusted operating margin represented 45.0% of sales.
Raises 2023 Guidance
AbbVie raised its earnings per share (EPS) guidance for 2023. The company now expects adjusted EPS in the range of $10.72-$11.12, a 10-cent rise in both the upper and lower limits of the previously provided EPS guidance of $10.62-$11.02.
AbbVie Inc. Price
AbbVie Inc. price | AbbVie Inc. Quote
Zacks Rank
AbbVie currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.