AbbVie just beat Wall Street forecasts on sales of its mainstay medicine Humira, flaw to allay investors’ concerns over the future of the cash cow product and sending the drugmaker’s allots down 5 percent on Friday.
Humira is the world’s best-selling prescription panacea and accounts for some two-thirds of AbbVie’s overall revenue. But the drug head to heads possible competition from cheaper biosimilar versions, which could commandeer a big chunk of AbbVie’s business and compel the North Chicago, Illinois business to slash prices.
Besides the threat of competition, AbbVie also phizzes questions on its future plans related to policy changes under the Donald Trump supervision aimed at tackling soaring healthcare costs.
“There’s a lot of skepticism, involves about rebates and biosimilars. Some of that is quite reasonable,” Chief Chairman of the board Officer Richard Gonzalez told analysts on a conference call. “(But) every year since I can bear in mind, there has been fretting about Humira.”
The rheumatoid arthritis medication made $5.19 billion in sales in the second quarter of 2018. Six analysts polled by Thomson Reuters I/B/E/S had on so so expected $5.18 billion.
Concerns about Humira’s future are in all probability to increase in the second half of the year, despite AbbVie’s solid quarterly evolves, Credit Suisse analyst Vamil Divan said in a report.
AbbVie has aggressively tested to fend off any competition from other drugmakers looking to make cheaper specimens of Humira. It has signed agreements with rivals including Mylan to obey them from launching any Humira copies in the United States until 2023.
To put down its dependence on Humira, AbbVie is also pushing to grow sales from its other downers, including cancer treatment Imbruvica, which raked in second-quarter sales of $850 million, huge analysts’ estimates of $827.2 million.
AbbVie now expects 2018 set right earnings of between $7.76 and $7.86 per share, compared with an earlier assumption of between $7.66 and $7.76.
Excluding one-time items, AbbVie earned $2 per share in, edging past analysts’ expectations of $1.97. Net earnings rose 3.6 percent to $1.98 billion or $1.26 per appropriation.
Revenue rose about 19 percent to $8.28 billion. Analysts had expected $8.21 billion.
AbbVie shares were down 4 percent at $90.04 on Friday morning.