AbbVie Exceeds Q3 Estimates Thanks to Skyrizi, Rinvoq

In the third quarter, AbbVie experienced mixed results in its immunology sector, with Humira falling short of Wall Street’s expectations but Skyrizi and Rinvoq exceeding them, underscoring the overall robustness of the company's immunology division.

Despite the ongoing decline in Humira sales due to biosimilar competition, AbbVie surpassed analysts' expectations in its third-quarter earnings report. The company’s revenue increased by 3.8% to $14.46 billion, slightly above the forecast of $14.3 billion. Adjusted diluted earnings-per-share (EPS) were reported at $3, outpacing Wall Street’s estimate of $2.94.

This performance was achieved in spite of Humira’s significant sales drop, which plummeted 37% year-over-year to $2.23 billion from $3.55 billion in the same period the previous year. Chief Commercial Officer Jeffrey Stuart attributed this decline to the loss of exclusivity and the impact of biosimilar competition in the U.S.

Nevertheless, company executives remained optimistic about the prospects of the immunology unit. CEO Robert Michael expressed satisfaction with the performance of the company’s non-Humira portfolio. He highlighted that AbbVie’s diverse portfolio exceeded sales expectations by $260 million, primarily driven by the strong performance of its other immunology assets.

Skyrizi, used for treating plaque psoriasis and psoriatic arthritis and considered a successor to Humira, saw a remarkable 50.8% increase in net revenue, reaching $3.2 billion in the third quarter, surpassing analyst expectations. Likewise, Rinvoq, an oral JAK inhibitor for ulcerative colitis, Crohn’s disease, and other immune-mediated diseases, grew by 45.3% to $1.17 billion in sales during this period.

William Blair analyst Myles Minter noted that AbbVie’s third-quarter success was largely due to the continued strength of Skyrizi and Rinvoq, projecting strong and sustainable growth in the years ahead due to AbbVie’s robust growth platform. Minter also mentioned that AbbVie has effectively managed the erosion of Humira sales, providing investors with confidence in the company’s growth outlook both in the near and long term.

Guggenheim Partners analyst Vamil Divan emphasized the performance of AbbVie’s oncology products, Imbruvica and Venclexta, which surpassed market expectations. Venclexta grew by nearly 15% year-over-year, contributing $677 million in the third quarter. Conversely, Imbruvica, despite earning $828 million, faced an 8.8% decline in sales.

Looking ahead, Leerink Partners analyst David Risinger highlighted upcoming developments in AbbVie’s pipeline, particularly the forthcoming data readout for emraclidine, a promising next-generation anti-psychotic drug for schizophrenia. Results from two Phase II studies, EMPOWER-1 and EMPOWER-2, are anticipated by the year’s end. Risinger also pointed out two potential Alzheimer’s treatments, ABBV-552 and AL002, both currently in Phase II trials.