AbbVie boosts 2019 profit outlook as Humira helps beat revenue estimates
Reuters
Published Nov 01, 2019 08:52AM ET
AbbVie boosts 2019 profit outlook as Humira helps beat revenue estimates
(Reuters) - AbbVie Inc (N:ABBV) posted quarterly sales above estimates on Friday and raised the lower end of its 2019 profit forecast, getting a boost from strong demand for cancer medicine Imbruvica and a lower-than-expected drop in bestseller Humira's revenue.
Shares of the Chicago, Illinois-based drugmaker rose nearly one percent to $80 before the bell.
In June, AbbVie announced a $63 billion deal for Botox-maker Allergan Plc (N:AGN), in a bid to diversify its drug pipeline amid growing threats to Humira's longevity.
The world's top-selling drug, which treats rheumatoid arthritis and psoriasis, has come under pressure from cheaper rivals in Europe and faces patent expiration in the United States - its biggest market, in 2023.
Humira sales was about $20 billion last year and the drug has accounted for the bulk of AbbVie's revenue for years.
In the quarter ended Sept. 30, Humira sales dipped 3.7% to $4.94 billion, hurt by biosimilar competition outside the United States, but beat estimates of $4.89 billion, according to five analysts polled by Refinitiv IBES.
Sales of cancer drug Imbruvica rose nearly 30% to $1.26 billion, ahead of estimates of $1.19 billion.
AbbVie raised the lower end of its 2019 adjusted earnings per share forecast by 8 cents to $8.90, while maintaining the top end at $8.92.
Net earnings fell to $1.88 billion, or $1.26 per share, from $2.75 billion, or $1.81 per share, a year earlier, as research and development costs soared and the company took a charge related to assets acquired as part of an acquisition in 2016.
Excluding items, AbbVie earned $2.33 per share, above the average analyst estimate of $2.30.
Total revenue rose nearly 3% to $8.48 billion, beating estimates of $8.38 billion.
AbbVie said it still expects the deal for Allergan to close early next year and that both companies were cooperating with regulators after receiving a request for more information from the U.S. Federal Trade Commission in September.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.