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AbbVie Inc. (ABBV - Free Report) reported adjusted earnings of $2.65 per share in second-quarter 2024, beating the Zacks Consensus Estimate of $2.57. The reported earnings also exceeded the guidance of $2.53-$2.57. However, earnings declined 8.9% year over year.
ABBV’s revenues of $14.46 billion beat the Zacks Consensus Estimate of $14.05 billion. Sales rose 4.3% year over year on a reported basis and 5.6% on an operational basis. This uptick can be attributed to a rise in product sales of key drugs like Rinvoq, Skyrizi, Venclexta and Vraylar, partially offset by declining sales of Humira and Imbruvica.
All growth rates mentioned below are on a year-on-year basis and at constant exchange rates (CER).
Quarter in Detail
In immunology, AbbVie’s flagship drug, Humira, recorded a sales decline of 28.9% to $2.81 billion. Sales in the United States declined 31.6% to $2.36 billion, while ex-U.S. market sales were down 12.5% on an operating basis to $454 million. While the drug’s sales beatthe Zacks Consensus Estimate of $2.79 billion, it was nearly in line with our model estimates of $2.81 billion.
This substantial decline in Humira sales was due to the drug’s loss of exclusivity in the United States since last year. The drug lost its exclusivity in ex-U.S. territories following the launch of generics in 2018.
Net revenues from Rinvoq in the second quarter were $1.43 billion, up 59.2%. The upside can be attributed to label expansions to the drug to include new patient populations in recent quarters. Rinvoq sales beat the Zacks Consensus Estimate and our model estimates of $1.35 billion and $1.33 billion, respectively.
Net revenues recorded from Skyrizi were $2.73 billion, up 45.6%. This uptick in sales is due to label expansions to the drug to include new patient populations in recent quarters. Skyrizi sales beat the Zacks Consensus Estimate of $2.63 billion and our model estimates of $2.55 billion.
Sales from the neuroscience portfolio increased 15.2% to $2.16 billion, driven by higher sales of Botox Therapeutic, the depression drug Vraylar, and migraine drugs Ubrelvy and Qulipta. Neuroscience sales figures beat the Zacks Consensus Estimate and our model estimate of $2.18 billion and $2.17 billion, respectively.
While Botox Therapeutic sales rose 9.6% to $814 million, sales of Vraylar increased 17.6% to $774 million. Sales of AbbVie’s oral migraine drug Ubrelvy were $231 million, up 17.5% year over year.
The recently launched Qulipta generated $150 million in product revenues compared with $131 million in first-quarter 2024.
AbbVie’s oncology/hematology sales rose 12.2% to $1.63 billion in the quarter, as sales from the recently acquired ovarian cancer drug Elahere and rising Venclexta sales more than offset the declining Imbruvica sales. The oncology/hematology sales figure significantly beat the Zacks Consensus Estimate of $1.52 billion and our model estimate of $1.51 billion.
Second-quarter net revenues from Imbruvica were $833 million, down 8.2%. However, sales of the drug were better than the Zacks Consensus Estimate of $780 million and our model estimate of $759 million.AbbVie markets this drug in partnership with Johnson & Johnson (JNJ - Free Report) .
U.S. sales of J&J-partnered Imbruvica declined 10.6% to $595 million. Sales of the J&J-partnered Imbruvica declined amid rising competition from novel oral treatments in the United States. AbbVie shares international profits earned from Imbruvica with J&J. The company’s share of profit from the international sales of the drug declined 1.4% to $238 million.
AbbVie’s leukemia drug Venclexta generated revenues of $637 million in the reported quarter, reflecting 15.8% growth. AbbVie markets Venclexta in collaboration with Roche (RHHBY - Free Report) . The Roche-partnered drug beat the Zacks Consensus Estimate and our model estimate of $612 million and $596 million, respectively.
In February, management completed the acquisition of ImmunoGen, following which it added ovarian cancer drug Elahere to its portfolio. During the quarter, Elahere generated revenues of $128 million in the quarter compared with partially-recorded revenues of $64 million by AbbVie in first-quarter 2024. Sales of the drug beat the Zacks Consensus Estimate and our model estimate of $120 million and $115 million, respectively.
The company recorded sales worth $36 million from the recently launched lymphoma drug Epkinly/Tepkinly, which is marketed in partnership with Genmab (GMAB - Free Report) . AbbVie shares U.S. profits earned from Epkinly with Genmab. The company’s share of profit from U.S. sales was $14 million.
AbbVie’s aesthetics portfolio sales were up 2.8% to $1.39 billion. Sales of Botox Cosmetic sales rose 8.6% to $729 million, while Juvederm sales fell 3.1% to $343 million.
Eye care portfolio sales declined 10.9% to $533 million. Sales of Ozurdex, a key drug in the portfolio, rose 8.0% to $124 million.
Cost Discussion
Adjusted SG&A expenses rose 3.0% to $3.32 billion, while adjusted R&D expenses were $1.92 billion in the second quarter, up 10.8% year over year. The adjusted operating margin contributed 42.6% to sales.
2024 Guidance Raised
AbbVie raised its earnings per share (EPS) guidance for 2024. The company expects adjusted EPS in the range of $10.61-$10.81, up from the previous guidance of $10.71-$10.91.
Our Take
AbbVie’s second-quarter results were better than expected, with the top and the bottom line surpassing expectations. The company also raised its EPS guidance for 2024, which we expect was likely due to the better-than-expected sales performance of immunology drugs during the quarter.
Despite declining sales due to competition, sales from Humira and Imbruvica were better than expectations. This highlights management’s commercial expertise in navigating through a market where multiple biosimilar versions of the drug are being sold.
Year to date, AbbVie’s stock has risen 13.7% compared with the industry‘s 20.1% growth.
Image Source: Zacks Investment Research
Management’s efforts to strengthen AbbVie’s oncology portfolio are also showing promise. The company has managed to achieve growth in this segment again, thanks to rising sales of Elahere and Epkinly. Elahere is the first and the only antibody-drug conjugate (ADC) approved for ovarian cancer indication.
AbbVie has been on an acquisition spree lately, which is strengthening its pipeline. Particularly, it is signing several M&A deals in the inflammatory bowel diseases (IBD) space, its core area. During the second quarter, management completed two acquisitions, Landos Biopharma and Celsius Therapeutics, adding their respective lead pipeline candidates targeting multiple IBD conditions.
Image: Shutterstock
AbbVie (ABBV) Beats on Q2 Earnings & Sales, Ups '24 EPS View
AbbVie Inc. (ABBV - Free Report) reported adjusted earnings of $2.65 per share in second-quarter 2024, beating the Zacks Consensus Estimate of $2.57. The reported earnings also exceeded the guidance of $2.53-$2.57. However, earnings declined 8.9% year over year.
ABBV’s revenues of $14.46 billion beat the Zacks Consensus Estimate of $14.05 billion. Sales rose 4.3% year over year on a reported basis and 5.6% on an operational basis. This uptick can be attributed to a rise in product sales of key drugs like Rinvoq, Skyrizi, Venclexta and Vraylar, partially offset by declining sales of Humira and Imbruvica.
All growth rates mentioned below are on a year-on-year basis and at constant exchange rates (CER).
Quarter in Detail
In immunology, AbbVie’s flagship drug, Humira, recorded a sales decline of 28.9% to $2.81 billion. Sales in the United States declined 31.6% to $2.36 billion, while ex-U.S. market sales were down 12.5% on an operating basis to $454 million. While the drug’s sales beatthe Zacks Consensus Estimate of $2.79 billion, it was nearly in line with our model estimates of $2.81 billion.
This substantial decline in Humira sales was due to the drug’s loss of exclusivity in the United States since last year. The drug lost its exclusivity in ex-U.S. territories following the launch of generics in 2018.
Net revenues from Rinvoq in the second quarter were $1.43 billion, up 59.2%. The upside can be attributed to label expansions to the drug to include new patient populations in recent quarters. Rinvoq sales beat the Zacks Consensus Estimate and our model estimates of $1.35 billion and $1.33 billion, respectively.
Net revenues recorded from Skyrizi were $2.73 billion, up 45.6%. This uptick in sales is due to label expansions to the drug to include new patient populations in recent quarters. Skyrizi sales beat the Zacks Consensus Estimate of $2.63 billion and our model estimates of $2.55 billion.
Sales from the neuroscience portfolio increased 15.2% to $2.16 billion, driven by higher sales of Botox Therapeutic, the depression drug Vraylar, and migraine drugs Ubrelvy and Qulipta. Neuroscience sales figures beat the Zacks Consensus Estimate and our model estimate of $2.18 billion and $2.17 billion, respectively.
While Botox Therapeutic sales rose 9.6% to $814 million, sales of Vraylar increased 17.6% to $774 million. Sales of AbbVie’s oral migraine drug Ubrelvy were $231 million, up 17.5% year over year.
The recently launched Qulipta generated $150 million in product revenues compared with $131 million in first-quarter 2024.
AbbVie’s oncology/hematology sales rose 12.2% to $1.63 billion in the quarter, as sales from the recently acquired ovarian cancer drug Elahere and rising Venclexta sales more than offset the declining Imbruvica sales. The oncology/hematology sales figure significantly beat the Zacks Consensus Estimate of $1.52 billion and our model estimate of $1.51 billion.
Second-quarter net revenues from Imbruvica were $833 million, down 8.2%. However, sales of the drug were better than the Zacks Consensus Estimate of $780 million and our model estimate of $759 million.AbbVie markets this drug in partnership with Johnson & Johnson (JNJ - Free Report) .
U.S. sales of J&J-partnered Imbruvica declined 10.6% to $595 million. Sales of the J&J-partnered Imbruvica declined amid rising competition from novel oral treatments in the United States. AbbVie shares international profits earned from Imbruvica with J&J. The company’s share of profit from the international sales of the drug declined 1.4% to $238 million.
AbbVie’s leukemia drug Venclexta generated revenues of $637 million in the reported quarter, reflecting 15.8% growth. AbbVie markets Venclexta in collaboration with Roche (RHHBY - Free Report) . The Roche-partnered drug beat the Zacks Consensus Estimate and our model estimate of $612 million and $596 million, respectively.
In February, management completed the acquisition of ImmunoGen, following which it added ovarian cancer drug Elahere to its portfolio. During the quarter, Elahere generated revenues of $128 million in the quarter compared with partially-recorded revenues of $64 million by AbbVie in first-quarter 2024. Sales of the drug beat the Zacks Consensus Estimate and our model estimate of $120 million and $115 million, respectively.
The company recorded sales worth $36 million from the recently launched lymphoma drug Epkinly/Tepkinly, which is marketed in partnership with Genmab (GMAB - Free Report) . AbbVie shares U.S. profits earned from Epkinly with Genmab. The company’s share of profit from U.S. sales was $14 million.
AbbVie’s aesthetics portfolio sales were up 2.8% to $1.39 billion. Sales of Botox Cosmetic sales rose 8.6% to $729 million, while Juvederm sales fell 3.1% to $343 million.
Eye care portfolio sales declined 10.9% to $533 million. Sales of Ozurdex, a key drug in the portfolio, rose 8.0% to $124 million.
Cost Discussion
Adjusted SG&A expenses rose 3.0% to $3.32 billion, while adjusted R&D expenses were $1.92 billion in the second quarter, up 10.8% year over year. The adjusted operating margin contributed 42.6% to sales.
2024 Guidance Raised
AbbVie raised its earnings per share (EPS) guidance for 2024. The company expects adjusted EPS in the range of $10.61-$10.81, up from the previous guidance of $10.71-$10.91.
Our Take
AbbVie’s second-quarter results were better than expected, with the top and the bottom line surpassing expectations. The company also raised its EPS guidance for 2024, which we expect was likely due to the better-than-expected sales performance of immunology drugs during the quarter.
Despite declining sales due to competition, sales from Humira and Imbruvica were better than expectations. This highlights management’s commercial expertise in navigating through a market where multiple biosimilar versions of the drug are being sold.
Year to date, AbbVie’s stock has risen 13.7% compared with the industry‘s 20.1% growth.
Image Source: Zacks Investment Research
Management’s efforts to strengthen AbbVie’s oncology portfolio are also showing promise. The company has managed to achieve growth in this segment again, thanks to rising sales of Elahere and Epkinly. Elahere is the first and the only antibody-drug conjugate (ADC) approved for ovarian cancer indication.
AbbVie has been on an acquisition spree lately, which is strengthening its pipeline. Particularly, it is signing several M&A deals in the inflammatory bowel diseases (IBD) space, its core area. During the second quarter, management completed two acquisitions, Landos Biopharma and Celsius Therapeutics, adding their respective lead pipeline candidates targeting multiple IBD conditions.
AbbVie Inc. Price
AbbVie Inc. price | AbbVie Inc. Quote
Zacks Rank
AbbVie currently has a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.