Connect with us


AbbVie Stock dives despite ‘firing on all cylinders’ in the first quarter




AbbVie Stock dives despite 'firing on all cylinders' in the first quarter

AbVie (ABBV) “is firing on all cylinders,” an analyst said Friday after the pharma giant beat Wall Street’s first-quarter expectations and raised its earnings outlook. But AbbVie shares plummeted.


Humira remains AbbVie’s biggest moneymaker despite competition from biosimilars in the US and abroad. Humira treats immunological conditions such as arthritis and psoriasis. During the March quarter, Humira’s revenue fell 35.9% to $2.27 billion. But analysts expected a steeper plunge to $2.2 billion to $2.24 billion, Piper Sandler analyst Christopher Raymond said in a report.

“This is despite the significant increase in US biosimilar market share in April,” Leerink Partners analyst David Risinger said in a client note.

In particular, the newer immunology drugs Skyrizi and Rinvoq are gaining traction quickly, and Skyrizi could soon overtake Humira as AbbVie’s biggest drug. Skyrizi’s revenue rose 47.6% to $2.01 billion, beating expectations for $1.93 billion. Rinvoq brought in $1.09 billion, up 59.3%, and topped demand at $1.04 billion, Piper Sandler’s Raymond said.

But in today’s stock market, AbbVie stock fell 4.6% to 159.62.

AbbVie Stock: Profit and revenue exceed expectations

In total, AbbVie achieved $12.31 billion in revenue and earned $2.31 per share, minus some items. Revenue increased 0.7% on a strict, as reported basis, and increased operationally 1.6%.

Earnings per share fell 6.1%, but exceeded expectations by a nickel, according to FactSet. Earnings fell 8 cents due to tax charges and milestone costs, AbbVie said in a news release.

AbbVie’s cancer treatment revenues also exceeded expectations by a combined $163 million, William Blair analyst Tim Lugo said in a report. That division generated revenue of $1.54 billion, an increase of 9%.

But sales of aesthetic products lagged, Piper Sandler’s Raymond said. Botox as a cosmetic treatment generated sales of $633 million, missing forecasts of $689 million. Raymond called for an even stronger $710 million. Sales of the skin-tightening drug Juvederm lagged at $297 million.

Neuroscience revenue was mixed. Botox as a therapeutic treatment for migraines, excessive sweating and other conditions totaled $748 million. Analysts broadly forecast revenue of $765 million, according to Raymond. His estimate was a more conservative $710 million. But it beat out migraine drugs Ubrelvy and Qulipta with sales of $203 million and $131 million, respectively.

For this year, AbbVie raised its earnings outlook from $11.13 to $11.33 per share. AbbVie stock analysts forecast earnings per share of $11.12 and revenue of $54.52 billion.

Follow Allison Gatlin on X, the platform formerly known as Twitter, at @IBD_AGatlin.


Why Big Pharma is following Novartis’ lead in a $25 billion market

Biogen shares are rising after two notable products disrupted sales expectations

Find the best long-term investments with IBD Long-Term Leaders

View stocks on the leader list near a buy point

IBD Stocks of the Day: Find out how to find, track and buy the best stocks