AbbVie's 2023 profit forecast misses as Humira faces heat from rivals
Feb 9 (Reuters) -AbbVie Inc ABBV.N on Thursday forecast 2023 profit below Wall Street expectations, in the first outlook since its blockbuster arthritis drug Humira faced competition from cheaper biosimilars in the United States early this year.
The company said it expected adjusted profit in the range of $10.70 to $11.10 per share for the full year, compared with analysts' average estimate of $11.65, according to Refinitiv IBES data.
AbbVie's weak forecast suggests that Humira rivals could nibble away at the blockbuster drug's market share at a faster pace this year than analysts' projections.
Amgen Inc AMGN.O recently launched Amjevita, the first such competition for Humira in the U.S., at a 5% and 55% discount to the drug's monthly price of $6,922.
At least seven other Humira biosimilars are expected this summer and could debut with discounted list prices.
Sales of the drug, AbbVie's growth driver for years, could decline by as much as 50% once more rivals gain health insurance coverage.
In the fourth quarter, Humira sales dropped 26.5% to $573 million in international markets such as Europe, where it already faces competition from multiple cheaper versions.
Overall, Humira sales rose 4.6% to $5.58 billion, in line with estimates, lifted by growth in the U.S. market.
In 2020, Abbvie sought to pre-empt the so-called "sales cliff" from Humira patent expiry through its $63-billion deal to buy Botox-maker Allergan.
Botox sales for cosmetic applications were up 2.6% at $642 million in the last three months of 2020, beating estimates of $629 million.
The drugmaker has also been hoping that newer immunology drugs Skyrizi and Rinvoq can help replace the lost revenue from Humira.
Skyrizi sales of $1.58 billion beat estimates of $1.52 billion, while Rinvoq missed with $770 million in sales compared with expectations of $816.14 million.
Excluding items, AbbVie earned $3.60 per share in the fourth quarter, beating analysts' average estimates of $3.56 per share.
Reporting by Mariam E Sunny and Leroy Leo in Bengaluru; Editing by Sriraj Kalluvila
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
