AbbVie’s immunology drugs offset Humira sales decline in Q3

AbbVie is raising its profit outlook and full-year 2024 guidance as its leading immunology drugs, Skyrizi and Rinvoq, have exceeded quarterly revenue expectations, according to the company's third-quarter report. The global net revenues for Skyrizi amounted to $3.2 billion, marking a 50% increase from the previous year. Rinvoq also saw a substantial increase in its global net revenues, which reached $1.6 billion, up by 45%. These impressive performances of Skyrizi and Rinvoq have prompted AbbVie to adjust its adjusted diluted EPS guidance for the year, moving it from the previous range of $10.67 to $10.87, to a new range of $10.90 to $10.94. This adjustment comes despite the declining sales of Humira, which used to be the company's top-selling drug. For this quarter, Humira's global net revenues were $2.2 billion, reflecting a 37% year-over-year decrease.

Analysts from William Blair noted in a report on Wednesday that the revenues from Rinvoq and Skyrizi compensated for the shortfall in Humira sales, with the two drugs exceeding their revenue estimate by $185 million. AbbVie's total quarterly revenue was $14.4 billion, surpassing both the company's previous guidance and the analysts' consensus estimate of $14.2 billion. According to the analysts, this outperformance was primarily driven by Rinvoq and Skyrizi.

AbbVie's CEO, Rob Michael, discussed the trends observed in this latest report during a Wednesday morning investor call, describing them as a "net positive." He emphasized that the success of Skyrizi and Rinvoq more than offset the revenue decline from Humira. Michael highlighted that the company is witnessing a shift from the Humira molecule to other mechanisms, including Skyrizi and Rinvoq, which he sees as a long-term positive development. He projected that approximately two years after the US Humira lost its exclusitivity, AbbVie would return to robust growth in both top-line and bottom-line metrics, driven by various parts of the business, not just Skyrizi and Rinvoq.

This year, AbbVie has executed 15 deals within its five key growth areas: eye care, immunology, oncology, neuroscience, and aesthetics. These deals are part of the company's strategy to return to growth. Among these transactions is a licensing deal with FutureGen Biopharmaceutical for an anti-TL1A antibody aimed at treating inflammatory bowel disease, and the acquisition of early-stage neuroscience biotech Aliada Therapeutics for $1.4 billion.

During the investor call, Michael mentioned that the company would prioritize early-stage opportunities to fuel growth over the next decade. He stated that if AbbVie identifies an opportunity for differentiation in a large market with significant unmet need, such as metabolics, the company might consider pursuing it to drive growth in the coming decade. However, Michael emphasized that such opportunities would be approached opportunistically and are not the company's primary focus at the moment.