AbbVie, a Chicago-based pharmaceutical company, has revised its 2027 sales forecast for its immunology drugs, Skyrizi and Rinvoq, to $27 billion, marking a $6 billion increase from its previous estimate.
This adjustment comes as AbbVie seeks to offset the declining sales of its blockbuster arthritis medication, Humira, with revenue generated from its newer immunology drugs.
During an investor call, AbbVie attributed this upward revision to the impressive growth exhibited by Skyrizi and Rinvoq, predicting that the two drugs would generate $16 billion in sales in the current year.
Further predictions include Skyrizi sales of $10.5 billion and Rinvoq sales of $5.5 billion for the year 2024.
Following this announcement, AbbVie’s stock saw a 1.6% increase in early trading.
Analysts anticipate that these revised forecasts will alleviate pricing concerns and facilitate high-single-digit growth throughout the decade.
In the fourth quarter of 2023, Rinvoq sales surpassed expectations at $1.26 billion, while Skyrizi sales reached $2.39 billion, aligning with estimates.
Notably, Humira, once the world’s best-selling drug, faced U.S. competition from biosimilars for the first time in 2023, resulting in a 35% decline in U.S. sales to $12.16 billion for the year.
AbbVie projected that Humira would generate $9.6 billion in sales in 2024, accounting for a U.S. erosion rate of approximately 36%. In Q4, Humira sales dropped by 41%, but still exceeded estimates, supported by favorable positions on insurance drug coverage lists.
While AbbVie anticipated a reduction in Humira’s insurance coverage in the U.S. year-over-year, it expected to maintain comprehensive coverage on pharmacy benefit manager (PBM) formularies in 2024.
PBMs function as intermediaries between employers, health plans, and drug manufacturers, negotiating rebates, fees, and maintaining lists of covered medications.
AbbVie’s 2024 outlook also included an adjusted profit projection in the range of $11.05 to $11.25 per share.
While the consensus estimate stood at $11.24, some analysts noted that it only partially accounted for the 32-cent impact resulting from AbbVie’s acquisitions of drug developers ImmunoGen and Cerevel Therapeutics in the prior year.
AbbVie’s Botox, a well-known product in its portfolio, generated sales of $1.49 billion, surpassing the combined estimates of $1.43 billion.
Despite increased competition from newer anti-wrinkle injections, such as those from Revance Therapeutics and Evolus, AbbVie exceeded expectations.
In conclusion, AbbVie’s optimistic sales forecasts for Skyrizi and Rinvoq indicate a promising future for its immunology drug portfolio, aiming to compensate for the decline in Humira sales.
The company remains determined to navigate market challenges and maintain profitability through its diverse range of pharmaceutical products.