AbbVie raises profit forecast after Humira, newer drugs drive results beat

(Reuters) -AbbVie on Friday raised its annual profit forecast after beating quarterly earnings estimates, helped by a lower-than-feared drop in sales of its blockbuster arthritis drug, Humira, and strong demand for newer drugs.

The company also disclosed a $2.1 billion impairment charge due to the addition of cancer drug Imbruvica in the U.S. government’s list of medicines subject to the first-ever price negotiations by U.S. Medicare.

President Joe Biden’s signature Inflation Reduction Act (IRA), signed into law last year, allows Medicare to negotiate prices for some of its most costly drugs.

The company’s shares fell marginally in premarket trade. AbbVie (NYSE:) investors are focused on the erosion of Humira’s sales following the entry of over half a dozen biosimilars this year, including those from Sandoz (SIX:), Amgen (NASDAQ:) and German drugmaker Boehringer Ingelheim.

Despite those biosimilars, Humira has maintained favorable positions on insurance drug coverage lists. AbbVie in July trimmed its 2023 view for Humira sales erosion to 35%, from 37% earlier.

Humira’s global sales fell 36.2% to $3.55 billion in the third quarter, but exceeded Wall Street estimates of $3.48 billion, according to LSEG data.

AbbVie has been seeking to expand the use of newer immunology drugs Skyrizi and Rinvoq as it banks on them to make up for the expected drop in Humira sales.

Skyrizi and Rinvoq generated global sales of $2.13 billion and $1.11 billion respectively, ahead of analyst expectations of $2.10 billion and $1.02 billion. AbbVie reported $13.93 billion in quarterly revenue, beating estimates of $13.71 billion.

It reported an adjusted profit of $2.95 per share, versus estimates of $2.86 per share.

The company now expects 2023 adjusted profit per share of between $11.19 and $11.23, compared with $10.86 and $11.06 it forecast earlier this month.