AbbVie raises profit forecast as immunology drugs continue to drive growth

Reuters, October 30 - AbbVie (ABBV.N) raised its annual profit forecast on Friday after reporting third-quarter results that exceeded Wall Street expectations, thanks to strong growth in sales of new immunology drugs that offset the impact from declining sales of its former key product Humira.

After Humira, its arthritis drug, lost exclusive patent protection in the US in 2023, AbbVie's immunology portfolio led by Skyrizi and Rinvoq has taken on a key role, helping the pharmaceutical company fill the void left by its former flagship drug.

According to data compiled by London Stock Exchange Group (LSEG), Skyrizi, used to treat skin and gastrointestinal diseases, recorded sales of $5.78 billion this quarter, up 22.7% year-on-year and above Wall Street forecasts of $5.75 billion.

Rinvoq, which treats various inflammatory joint, skin, and gastrointestinal conditions, reached revenue of $2.71 billion this quarter, representing a nearly 24% year-on-year increase.

AbbVie is expanding its growth potential beyond Humira through acquisitions and helping to offset the impact of future patent expirations.

In June, the company acquired (link) Apogee Therapeutics for $10.9 billion, adding experimental eczema and asthma treatments to AbbVie's long-term R&D pipeline. Although this deal is expected to weigh on profits before 2027, it is anticipated to contribute to earnings from 2032 onwards.

AbbVie's neuroscience portfolio also contributed to the stronger-than-expected results, with revenue from this business growing 19% to $3.39 billion, driven by Botox Therapeutic and the antipsychotic Vraylar.

The pharmaceutical company now expects adjusted annual earnings per share of $13.95 to $13.99, up from its previous forecast of $13.76 to $13.96. This projection includes a negative impact of $0.69 per share from in-process R&D and milestone expenses related to acquisitions accumulated through the third quarter.

Revenue for the quarter was $17.40 billion, higher than analysts’ expectations of $17.31 billion.

The company achieved adjusted earnings per share of $3.82 for the quarter, beating analysts’ forecasts of $3.75.

AbbVie's share price has risen about 27% so far this year, closing at a record high of $290.79 on Thursday.

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