ABBVIE Stock- Strong New Drugs Sales to Aid AbbVie’s (ABBV) Q1 Earnings
AbbVie, Inc.’s ABBV new immunology drugs — Skyrizi and Rinvoq — are likely to have contributed to top-line growth in the first quarter of 2021. The drugs have shown encouraging uptake since launch in 2019. During the second half of 2020, Rinvoq nearly achieved similar market share in rheumatoid arthritis segment compared to Humira while Skyrizi became the market leader in the psoriasis segment. These two drugs are likely to have partially offset some loss of sales of the company’s flagship drug, Humira, to generics in international markets. The Zacks Consensus Estimate for Skyrizi sales is pegged at $581 million.
Humira sales in the United States are likely to have maintained their uptrend during the first quarter on the back of continued demand for the drug. However, strong biosimilar competition in international markets, especially Europe, is likely to have partially offset the U.S. sales growth. Meanwhile, the impact of resurgence of COVID-19 cases on sales of Humira remains to be seen as it is a physician-administered drug.
Please note that Humira is approved for several inflammatory indications. It is also a major revenue generating drug for AbbVie and brought more than 40% of the company’s revenues in 2020.
The Zacks Consensus Estimate for Humira stands at $4.77 billion. The Zacks Consensus Estimate for U.S. sales is pegged at $3.97 billion while that for international sales is $810 million.
AbbVie’s stock has gained 4% so far this year compared with an increase of 2.8% for the industry.
Sales of key oncology medicine, Imbruvica were driven by continued penetration among patients with chronic lymphocytic leukemia in 2020, a trend likely to have continued in the first quarter. However, lower new patient starts in the CLL indication amid COVID-19 pandemic is likely to have hurt sales. The drug is marketed in partnership with J&J JNJ globally. The Zacks Consensus Estimate for the drug is pegged at $1.32 billion, comprising sales of $1.06 billion in the United States and $261 million of international profit sharing with J&J.
Sales of another leukemia drug, Venclexta, is likely to have gained from continued share gains across all approved indications similar to the past few quarters. However, lower new patient utilization may have impacted first-quarter performance as Venclexta is a hospital-based treatment. AbbVie markets Venclexta in partnership with Roche RHHBY. The Zacks Consensus Estimate for the drug is pegged at $388 million.
However, sales of AbbVie’s new HCV drug, Mavyret are likely to have been hurt by lower patient volumes in certain international markets and competitive dynamics in the United States. The Zacks Consensus Estimate for total sales is pegged at $445 million.
Sales of the company’s neuroscience franchise is expected to have been driven by Vraylar and migraine portfolio during the first quarter. Moreover, a label expansion of Botox therapeutic in February 2021 is likely to have brought additional revenues.
A rapid recovery in the aesthetics franchise, led by Botox Cosmetic and Juvederm, is likely to have boosted the top line in the soon-to-be reported quarter. The Zacks Consensus Estimate for the aesthetic franchise stands at $999 million and $1.3 billion for the neuroscience franchise.
AbbVie Inc. price and EPS Surprise
AbbVie Inc. price-eps-surprise | AbbVie Inc. Quote
Zacks Rank & Stock to Consider
AbbVie currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A better-ranked company from the biotech sector is Avid Bioservices, Inc. CDMO, carrying a Zacks Rank #2 (Buy). Earnings estimates for 2021 and 2022 have risen 80% and 53.8%, respectively, over the past 30 days. The stock has risen 86.9% so far this year.
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