AbbVie says Trump pressing for larger Medicare drug price cuts

Core Insights - AbbVie is facing pressure from the Trump administration for steeper cuts in Medicare drug price negotiations, with discounts potentially reaching up to 79% for certain drugs in 2024 [1] - The company reported a decline in quarterly sales of its aesthetic products, including Botox, which fell by 3.7% year-over-year, leading to a more than 4% drop in AbbVie shares [2] - AbbVie raised its 2025 profit forecast due to strong sales of newer immunology drugs, Skyrizi and Rinvoq, despite challenges in its aesthetics business [4][5] Group 1: Drug Price Negotiations - The Trump administration is advocating for deeper discounts in Medicare drug price negotiations, which are set to take effect in 2027 [2] - Last year, the Biden administration aimed to save $6 billion in 2026 through negotiations on top-selling prescription drugs, with AbbVie's Imbruvica facing a 38% cut [4] Group 2: Financial Performance - AbbVie expects adjusted annual profit per share for 2025 to be between $10.61 and $10.65, an increase from the previous expectation of $10.38 to $10.58 [5] - The company reported quarterly sales of $15.78 billion, surpassing analysts' average estimate of $15.59 billion, and anticipates fourth-quarter net sales of $16.3 billion for 2025 [7] Group 3: Market Challenges - The aesthetics business is experiencing headwinds, with concerns about the economy and inflation affecting customer spending [6][7] - Analysts have expressed concerns that continued weaker performance in the aesthetics segment could impact investor confidence [6]