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AbbVie Inc. (ABBV - Free Report) reported adjusted earnings of $2.91 per share for second-quarter 2023, beating the Zacks Consensus Estimate of $2.79. The reported earnings also exceeded the guidance of $2.75-$2.85. However, earnings declined 13.6% year over year.
ABBV’s revenues of $13.87 billion beat the Zacks Consensus Estimate of $13.52 billion. Sales declined 4.9% year over year on a reported basis and 4.2% on an operational basis. The downside was caused by lower sales of Humira, Imbruvica and Eye care products, which 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 24.8% to $4.01 billion on an operational basis. Sales in the United States declined 26.0% to $3.45 billion, while ex-U.S. market sales were down 17.0% on an operational basis to $560 million. The drug’s sales beatthe Zacks Consensus Estimate and our model estimates that were pegged at $3.93 billion and $3.95 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, called Amjevita.
Like Amgen, several other companies like Boehringer Ingelheim, Coherus BioSciences and Novartis (NVS - Free Report) have also started marketing their own Humira biosimilars since the onset of this month. Novartis, through its generic division Sandoz, markets its Humira biosimilar under the trade name Hyrimoz. Like Amgen and Novartis, more generic drugmakers are planning to launch their own Humira biosimilars throughout this year. These subsequent launches are expected to erode Humira’s sales in subsequent quarters. The drug lost the exclusivity in ex-U.S. territories following the launch of generics in 2018.
Net revenues from Rinvoq in the second quarter were $918 million, up 56.7% on an operational basis year over year. The upside can be attributed to label expansions to the drug to include new patient populations in recent quarters. Rinvoq sales beat the Zacks Consensus Estimate and our model estimates of $896 million and $878 million, respectively.
Net revenues recorded from Skyrizi in the second quarter were $1.88 billion, up 51.0% on an operational basis year over year. This uptick in sales is due to label expansions to the drug to include new patient populations in the recent quarters. Skyrizi sales beat the Zacks Consensus Estimate and our model estimates of $1.77 billion and $1.76 billion, respectively.
Sales from the neuroscience portfolio increased 14.2% on an operational basis to $1.89 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 $1.82 billion and $1.78 billion, respectively.
While Botox Therapeutic sales rose 11.3% to $748 million, sales of Vraylar increased 33.9% to $658 million. Sales of AbbVie’s oral migraine drug Ubrelvy were $196 million, up 6.0% year over year.
The recently-launched Qulipta generated $96 million in product revenues compared with $66 million in first-quarter 2023.
AbbVie’s oncology/hematology (including Imbruvica and Venclexta) sales declined 9.8% on an operational basis to $1.48 billion in the quarter, as growth of Venclexta sales, was more than offset by lower sales of Imbruvica. The oncology/hematology sales figure beat the Zacks Consensus Estimate and our model estimates of $1.43 billion and $1.44 billion, respectively.
Second-quarter net revenues from Imbruvica were $907 million, down 20.8% 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 $666 million, down 22.8% 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 14.7% to $241 million.
AbbVie’s leukemia drug Venclexta generated revenues of $571 million in the reported quarter, reflecting 15.0% year-over-year growth.
AbbVie’s aesthetics portfolio sales were up 2.9% on an operational basis to $1.38 billion, driven by rising Juvederm product sales. Sales of Juvederm rose 9.7% on an operational basis to $368 million, while Botox Cosmetic sales increased 0.7% on an operational basis to $685 million.
Eye care portfolio sales declined 12.3% on an operational basis to $617 million. Sales of Ozurdex, a key drug in the portfolio, rose 10.2% year over year to $119 million.
Cost Discussion
Adjusted SG&A expenses rose 6.0% to $3.22 billion, while adjusted R&D expenses were $1.73 billion in the second quarter, up 7.7% year over year. The adjusted operating margin contributed 47.0% to sales.
Raises 2023 Guidance
AbbVie raised its earnings per share (“EPS”) guidance for 2023. The company expects adjusted EPS in the range of $10.90-$11.10, up from the previously-provided EPS guidance of $10.57-$10.97.
Our Take
AbbVie’s second-quarter results were better than expected, with the top and the bottom line beating the consensus mark. The company also raised its EPS guidance for 2023. Shares rose 2.1% in pre-market trading on Jul 27 attributable to this guidance raise.
Year to date, AbbVie’s shares have lost 12.2% against the industry’s 1.8% rise.
Image Source: Zacks Investment Research
Despite the presence of Amgen’s Amjevita in first-half 2023, Humira sales beat both our model and consensus estimates. This reflected on a slower conversion to the Amgen biosimilar. However, we expect this conversion to accelerate as more Humira biosimilars are launched. This month alone, at least five Humira biosimilars were launched by Boehringer Ingelheim, Samsung Bioepis, Biocon, Coherus BioSciences and Novartis. The number of biosimilars is only expected to rise going forward.
AbbVie’s newer immunology drugs, Skyrizi and Rinvoq, which have been launched across Humira's major indications and a distinct new indication, atopic dermatitis, have to some extent succeeded in making up for lost Humira sales. The company’s neuroscience products have also been showing robust performance, being driven by sales of the recently approved migraine drugs, Qulipta and Ubrelvy.
Image: Shutterstock
AbbVie (ABBV) Beats on Q2 Earnings & Sales, Raises '23 View
AbbVie Inc. (ABBV - Free Report) reported adjusted earnings of $2.91 per share for second-quarter 2023, beating the Zacks Consensus Estimate of $2.79. The reported earnings also exceeded the guidance of $2.75-$2.85. However, earnings declined 13.6% year over year.
ABBV’s revenues of $13.87 billion beat the Zacks Consensus Estimate of $13.52 billion. Sales declined 4.9% year over year on a reported basis and 4.2% on an operational basis. The downside was caused by lower sales of Humira, Imbruvica and Eye care products, which 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 24.8% to $4.01 billion on an operational basis. Sales in the United States declined 26.0% to $3.45 billion, while ex-U.S. market sales were down 17.0% on an operational basis to $560 million. The drug’s sales beatthe Zacks Consensus Estimate and our model estimates that were pegged at $3.93 billion and $3.95 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, called Amjevita.
Like Amgen, several other companies like Boehringer Ingelheim, Coherus BioSciences and Novartis (NVS - Free Report) have also started marketing their own Humira biosimilars since the onset of this month. Novartis, through its generic division Sandoz, markets its Humira biosimilar under the trade name Hyrimoz. Like Amgen and Novartis, more generic drugmakers are planning to launch their own Humira biosimilars throughout this year. These subsequent launches are expected to erode Humira’s sales in subsequent quarters. The drug lost the exclusivity in ex-U.S. territories following the launch of generics in 2018.
Net revenues from Rinvoq in the second quarter were $918 million, up 56.7% on an operational basis year over year. The upside can be attributed to label expansions to the drug to include new patient populations in recent quarters. Rinvoq sales beat the Zacks Consensus Estimate and our model estimates of $896 million and $878 million, respectively.
Net revenues recorded from Skyrizi in the second quarter were $1.88 billion, up 51.0% on an operational basis year over year. This uptick in sales is due to label expansions to the drug to include new patient populations in the recent quarters. Skyrizi sales beat the Zacks Consensus Estimate and our model estimates of $1.77 billion and $1.76 billion, respectively.
Sales from the neuroscience portfolio increased 14.2% on an operational basis to $1.89 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 $1.82 billion and $1.78 billion, respectively.
While Botox Therapeutic sales rose 11.3% to $748 million, sales of Vraylar increased 33.9% to $658 million. Sales of AbbVie’s oral migraine drug Ubrelvy were $196 million, up 6.0% year over year.
The recently-launched Qulipta generated $96 million in product revenues compared with $66 million in first-quarter 2023.
AbbVie’s oncology/hematology (including Imbruvica and Venclexta) sales declined 9.8% on an operational basis to $1.48 billion in the quarter, as growth of Venclexta sales, was more than offset by lower sales of Imbruvica. The oncology/hematology sales figure beat the Zacks Consensus Estimate and our model estimates of $1.43 billion and $1.44 billion, respectively.
Second-quarter net revenues from Imbruvica were $907 million, down 20.8% 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 $666 million, down 22.8% 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 14.7% to $241 million.
AbbVie’s leukemia drug Venclexta generated revenues of $571 million in the reported quarter, reflecting 15.0% year-over-year growth.
AbbVie’s aesthetics portfolio sales were up 2.9% on an operational basis to $1.38 billion, driven by rising Juvederm product sales. Sales of Juvederm rose 9.7% on an operational basis to $368 million, while Botox Cosmetic sales increased 0.7% on an operational basis to $685 million.
Eye care portfolio sales declined 12.3% on an operational basis to $617 million. Sales of Ozurdex, a key drug in the portfolio, rose 10.2% year over year to $119 million.
Cost Discussion
Adjusted SG&A expenses rose 6.0% to $3.22 billion, while adjusted R&D expenses were $1.73 billion in the second quarter, up 7.7% year over year. The adjusted operating margin contributed 47.0% to sales.
Raises 2023 Guidance
AbbVie raised its earnings per share (“EPS”) guidance for 2023. The company expects adjusted EPS in the range of $10.90-$11.10, up from the previously-provided EPS guidance of $10.57-$10.97.
Our Take
AbbVie’s second-quarter results were better than expected, with the top and the bottom line beating the consensus mark. The company also raised its EPS guidance for 2023. Shares rose 2.1% in pre-market trading on Jul 27 attributable to this guidance raise.
Year to date, AbbVie’s shares have lost 12.2% against the industry’s 1.8% rise.
Image Source: Zacks Investment Research
Despite the presence of Amgen’s Amjevita in first-half 2023, Humira sales beat both our model and consensus estimates. This reflected on a slower conversion to the Amgen biosimilar. However, we expect this conversion to accelerate as more Humira biosimilars are launched. This month alone, at least five Humira biosimilars were launched by Boehringer Ingelheim, Samsung Bioepis, Biocon, Coherus BioSciences and Novartis. The number of biosimilars is only expected to rise going forward.
AbbVie’s newer immunology drugs, Skyrizi and Rinvoq, which have been launched across Humira's major indications and a distinct new indication, atopic dermatitis, have to some extent succeeded in making up for lost Humira sales. The company’s neuroscience products have also been showing robust performance, being driven by sales of the recently approved migraine drugs, Qulipta and Ubrelvy.
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.