AbbVie Raises 2024 Profit Forecast Amid Surge in Drug Sales

AbbVie Inc. (NYSE:ABBV) has updated its 2024 earnings forecast, citing strong sales of its immunology drugs Skyrizi and Rinvoq, as well as its cancer treatment Imbruvica. The pharmaceutical giant announced today that it has raised its full-year adjusted profit expectations from a range of $10.67 to $10.87 per share to a range of $10.90 to $10.94 per share.

This upward revision follows a strong performance in the third quarter. During this period, Skyrizi sales reached $3.21 billion, exceeding analysts' average estimate of $2.93 billion. Rinvoq also surpassed expectations with sales of $1.61 billion, compared to the anticipated $1.54 billion.

Conversely, Humira, once the world's top-selling drug, saw sales of $2.23 billion fall short of estimates of $2.39 billion. This decline occurred after more affordable biosimilar drugs entered the U.S. market last year. Pharmacy benefit managers are increasingly recommending these biosimilars over Humira, affecting its sales.

Despite the challenges facing Humira, the company’s key cancer drug Imbruvica performed well, generating $828 million in sales in the third quarter, surpassing analysts' predictions of $765.1 million.

However, AbbVie anticipates future pressure on Imbruvica's pricing under Medicare, with price reductions expected to take effect in 2026. This anticipated change led the company to set aside a reserve of $2.1 billion last year in anticipation of declining revenues.

AbbVie’s third-quarter adjusted earnings were $3 per share, which exceeded the analyst consensus by 9 cents. The company’s financial results reflect its strategic approach of focusing on new drugs amid a changing environment regarding drug pricing and competition.