AbbVie reported stronger-than-expected quarterly revenue and profit on Wednesday, driven by rising demand for its newer immunology drugs Skyrizi and Rinvoq. These treatments have become key growth drivers as the company continues its transition away from its once-blockbuster drug Humira.
The pharmaceutical company has increasingly relied on Skyrizi and Rinvoq to offset declining sales of Humira, which lost U.S. patent exclusivity in 2023 and now faces competition from lower-cost biosimilar alternatives.
Read Also – Biogen beats profit expectations as demand for newer rare-disease drugs fuel growth
AbbVie reported strong first-quarter performance from its key immunology drugs. Skyrizi generated sales of $4.48 billion, marking a 30.9% increase compared to the same period last year and surpassing Wall Street expectations of $4.41 billion, according to LSEG data. Rinvoq also performed well, with sales rising 23.3% to $2.12 billion, beating estimates of $2.04 billion.
Following the earnings release, AbbVie shares rose 2% in morning trading. Citi analyst Geoff Meacham noted that Skyrizi’s continued strength, despite competitive pressure and growth from Johnson & Johnson’s Tremfya, supports the view that the overall immunology drug market is expanding.
AbbVie said it continues “to be very open to acquiring external innovation”, with a major focus on immunology, neuroscience, oncology and obesity.
AbbVie CEO Robert Michael said the company does not need major acquisitions to achieve strong growth this decade, but remains open to smaller, near-term deals that can strengthen its core therapeutic areas.
In the obesity space, AbbVie highlighted interest in oral treatments as well as drug candidates designed to help patients preserve muscle while ensuring most weight loss comes from fat. Earlier this year, the company also stated its intention to expand its presence in the rapidly growing obesity treatment market.
Meanwhile, global Humira sales declined 38.6% to $688 million in the quarter, slightly below analyst expectations, reflecting ongoing competition following patent expiry.
On an adjusted basis, AbbVie earned $2.65 per share for the quarter ended March 31, surpassing analyst forecasts of $2.59 per share. The company also raised its full-year adjusted earnings guidance to a range of $14.08 to $14.28 per share, up from the previous range of $13.96 to $14.16. This updated outlook includes a 41-cent-per-share impact from acquired in-process research and development and milestone expenses recorded during the first quarter.
