AbbVie, Inc. (ABBV) Bank of America Health Care Conference Call Transcript

Core Insights - AbbVie is focusing on its growth platform, which constitutes 80% of its business and is expected to grow in the mid-teens, despite the erosion of HUMIRA sales [2][3][5] - The company anticipates robust growth in the coming years, projecting above industry average growth, with a high single-digit compound growth rate expected throughout this decade [3][12][13] Growth Platform Performance - The growth platform is projected to deliver $5.6 billion in growth this year, with mid-teens growth from the ex-HUMIRA portfolio [3][5] - SKYRIZI and RINVOQ are performing exceptionally well, with significant market share capture and continued momentum in inflammatory bowel disease (IBD) indications [4][6][9] HUMIRA Erosion Management - HUMIRA sales declined by approximately $6.5 billion last year and are expected to decline to about $4.5 billion this year, but AbbVie is managing this erosion effectively [5][12] - The company has successfully returned to growth one year after the U.S. HUMIRA loss of exclusivity (LOE), a feat not achieved by others in the industry [5][12] Oncology Pipeline - AbbVie has exciting oncology programs, including a BCMA CD3 bispecific in myeloma and an ADC using the Topo-1 warhead, with a strong start for ELAHERE [6][19] - The company is entering Phase III trials for ABBV-400 in colon cancer, showing promising response rates in a refractory patient population [19][20] Future Indications and Growth - SKYRIZI is expected to receive UC approval mid-year, which will further enhance its growth trajectory [8][9] - RINVOQ has a wave of new indications anticipated between 2026 and 2028, which could add several billion dollars in peak revenue [8][9] Part D Benefit Changes - The redesign of the Part D benefit is expected to impact growth, particularly in immunology and oncology, but AbbVie has already factored this into its guidance [11][12] - Despite the anticipated impact, the company expects to maintain robust growth above industry averages [12][13] Aesthetics Business Recovery - The U.S. toxin market has returned to growth, with mid-single-digit growth observed in the first quarter, and AbbVie projects high single-digit growth for its aesthetics business this year [44][45] - The company has maintained its market share for Botox despite competition from DAXXIFY, indicating resilience in its product offerings [44][45] Business Development Focus - AbbVie is prioritizing assets that can drive growth in the next decade, particularly in immunology and oncology, while also investing in early-stage opportunities [50][51] - The company is not constrained by its balance sheet but is strategically focused on deepening its core therapeutic areas [52][54]