Updated version 2 - AbbVie raises its annual earnings forecast as immunology drugs continue to drive growth

Updated share price performance, added executive comment in paragraph 3, and supplemented background information in paragraph 4

Kamal Choudhury/Christy Santhosh

Reuters, October 30 - AbbVie (ABBV.N) raised its annual earnings forecast on Friday after the company’s third-quarter results exceeded Wall Street expectations, mainly due to strong demand for its new immunology and brain disease drugs, pushing its share price up by 1%.

So far this year, the pharmaceutical company’s stock has risen by about 27%, hitting an all-time high, as investors expect that the newly launched immunology drugs Skyrizi and Rinvoq, as well as its pipeline therapies under development, will offset declining sales of its former blockbuster drug Humira.

“We’ve made significant progress across our entire R&D pipeline,” CEO Robert Michael told analysts, adding that AbbVie sees several long-term growth opportunities in the 2030s that are not yet reflected in Wall Street projections.

AbbVie is advancing several key drug development programs, including the dermatology drug lutikizumab (link), which aims to expand its immunology portfolio, as well as ABBV-295—an experimental obesity drug licensed last year from Danish biotech company Gubra.

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Immunology and neuroscience drive results above expectations

The company reported third-quarter revenue of $17.4 billion and adjusted earnings per share of $3.82, both exceeding analyst forecasts.

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, a year-over-year increase of 22.7%, surpassing Wall Street’s estimate of $5.75 billion.

Rinvoq, used to treat various inflammatory joint, skin, and gastrointestinal diseases, had revenue of $2.71 billion this quarter, in line with analyst expectations.

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AbbVie’s neuroscience portfolio also contributed to the outperformance, driven by Botox Therapeutic and the antipsychotic drug Vraylar, pushing segment revenue up 19% to $3.39 billion.

The pharmaceutical company now expects full-year adjusted earnings per share of $13.95 to $13.99, up from its previous forecast of $13.76 to $13.96. This guidance includes a negative impact of $0.69 from cumulative in-process R&D and milestone-related charges associated with acquisitions through the third quarter.

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