ABBV.US (ABBV.US) Q3 performance exceeded expectations, two major new drugs contributed nearly half of revenue

The Zhitong Finance App learned that ABBV.US (ABBV.US)'s third-quarter results exceeded expectations, mainly driven by increased sales of immunology and neuroscience drugs. The company also raised its full-year profit guidance and increased its quarterly dividend by 5.2%.

According to the data, AbbVie's third-quarter revenue increased 10% year-on-year to US$17.4 billion, higher than FactSet analysts' expectations of US$17.32 billion.

Notably, the revenue of Humira (Humira), the former “global drug king”, fell to US$683 million in the third quarter, down 31.2% year on year (according to the report), and continues to face competitive pressure for biosimilar drugs. However, the immunology sector did not shrink as a result; instead, it completed a smooth handover of new and old products — the overall revenue of the sector reached US$9.17 billion, up 16.3% year over year. This was mainly due to the strong volume of the two new drugs that took over: Skyrizi (rifutol) and Rinvoq (Rinvoq) recorded $5.78 billion and $2.71 billion respectively, which together contributed nearly half of the company's total revenue.

In addition, neuroscience portfolio revenue increased 19.4% to US$3.39 billion; oncology business revenue increased slightly by 0.8%; and medical and aesthetic business revenue decreased by 1.4%.

Net profit for the third quarter was US$4.22 billion, or US$2.37 per share, compared with US$186 million or US$0.10 per share for the same period last year. The quarter's results were dragged down by ongoing acquisition projects and milestone expenses of $0.11 per share. In the same period last year, this was dragged down to $1.50 per share. Adjusted earnings per share were $3.82, higher than FactSet analysts' expectations of $3.73.

AbbVie raised its quarterly dividend by 5.2% to $1.82 per share.

Increase the annual guidelines

AbbVie currently expects full-year adjusted earnings of $13.95 to $13.99 per share, which is higher than the previous guidance of $13.76 to $13.96. Wall Street expects full-year adjusted earnings per share of $13.91.

Earlier this month, the company lowered its full-year outlook to take into account the acquisition of ongoing projects and milestone expenses; it also lowered its forecast in July to reflect the acquisition of Apogee Therapeutics. The deal was recently completed to bring AbbVie ApoGee's experimental drug zumilokibart — which is expected to be a potential competitor between regenerative and Sanofi's DuPiXent for the treatment of moderate to severe atopic dermatitis (the most common type of eczema).