AbbVie, a leading pharmaceutical company, exceeded revenue expectations in its fiscal fourth quarter and updated its long-term sales forecast for two of its prominent immunology drugs. Although Humira revenue declined due to competition, AbbVie remains optimistic about its future growth prospects.
Fourth Quarter Performance
In the fourth quarter, AbbVie reported earnings of $2.79 per share, meeting analyst expectations but experiencing a decrease from $3.60 per share compared to the previous year. Despite this decline, AbbVie's revenue amounted to $14.3 billion, surpassing the consensus estimate of $14 billion. However, it fell short of the $15.1 billion revenue achieved in the same period last year.
Resilience Amidst Challenges
Acknowledging the challenges faced by Humira due to biosimilar competition, Chief Executive Richard Gonzalez expressed confidence in AbbVie's ability to navigate through these difficulties. He stated, "2024 is an exciting year for AbbVie, as we are well positioned to fully absorb Humira erosion and achieve modest operational revenue growth, followed by a return to robust growth in 2025."
Immunology Portfolio Performance
Despite the decline in Humira sales, AbbVie's immunology drugs Skyrizi and Rinvoq experienced significant growth. Skyrizi witnessed a remarkable increase in sales of 52% compared to the previous year, while Rinvoq saw an impressive growth rate of 63%.
Raised Sales Outlook and Long-Term Guidance
As a result of the strong performance of Skyrizi and Rinvoq, AbbVie has raised its long-term guidance for these drugs. The company now expects a combined revenue of over $27 billion for Skyrizi and Rinvoq by 2027, representing an increase of approximately $6 billion from its previous projection.
Future Earnings and Market Performance
AbbVie anticipates earnings of $11.05 to $11.25 per share in 2024, slightly lower than the average analyst expectation of $11.13 per share. Nevertheless, the company remains optimistic about its future prospects. In premarket trading, AbbVie's stock increased by 0.5%. Year-to-date, the stock has gained 15%.
In the pharmaceutical sector, AbbVie's peers experienced mixed results. Pfizer's stock declined by 0.4%, Moderna dropped by 0.8%, Amgen declined by 0.6%, while Eli Lilly's stock rose by 0.4%.
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