AbbVie (ABBV) raised its annual profit forecast after topping Wall Street expectations for the third quarter, driven by booming demand for its newer immunology and brain disease drugs. Its shares rose 1 percent.
The stock has gained about 27 percent this year to record highs, as investors bet that newer immunology drugs Skyrizi and Rinvoq, along with treatments in development, will offset declining sales of former marquee drug Humira.
“We are making significant progress across our pipeline,” chief executive Robert Michael told analysts, adding that AbbVie sees several longer-term growth opportunities in the 2030s that are not yet reflected in Wall Street forecasts. The drugmaker is advancing several key programs, including lutikizumab, a skin disease drug that could broaden its immunology franchise, and ABBV-295, an experimental weight-loss treatment licensed last year from Danish biotech Gubra.
Third-quarter revenue was $17.4bn and adjusted earnings were $3.82 per share, both ahead of analyst estimates.
Skyrizi, indicated for skin and gastrointestinal conditions, generated sales of $5.78bn, up 22.7 percent from a year earlier and ahead of the $5.75bn expected, according to data compiled by LSEG. Rinvoq, used to treat a range of inflammatory joint, skin and gastrointestinal conditions, brought in $2.71bn, in line with forecasts.
AbbVie’s neuroscience portfolio also contributed to the beat, with revenue climbing 19 percent to $3.39bn, helped by Botox Therapeutic and antipsychotic drug Vraylar.
The company now expects annual adjusted profit of $13.95 to $13.99 per share, up from its previous range of $13.76 to $13.96. The forecast includes a 69 cent hit from acquired in-process research and development and milestone expenses booked year to date through the third quarter.