AbbVie(US:ABBV)2024-07-25 17:04Financial Data and Key Metrics Changes - AbbVie reported total net revenues of nearly $14.5 billion, reflecting robust growth of 5.6% on an operational basis, excluding a 1.3% unfavorable impact from foreign exchange [35] - Adjusted earnings per share were $2.65, which is $0.10 above the guidance midpoint [35] - The company raised its full-year adjusted earnings per share guidance by $0.10 to between $10.71 and $10.91 [36] Business Line Data and Key Metrics Changes - Immunology delivered total revenues of approximately $7 billion, with Skyrizi and Rinvoq contributing more than $4.1 billion in combined sales, reflecting operational growth of 50% [11][12] - Oncology total revenues were more than $1.6 billion, with Imbruvica global revenues at $833 million, down 8.2%, and Venclexta global sales at $637 million, up 15.8% [15] - Neuroscience total revenues were nearly $2.2 billion, up 15.2%, driven by double-digit growth of Vraylar, Ubrelvy, and Qulipta [16] Market Data and Key Metrics Changes - U.S. Humira sales were $2.8 billion, down 28.9% on an operational basis due to biosimilar competition [15] - Aesthetic sales in the U.S. were $863 million, increasing by 4.4%, driven by Botox Cosmetic and Juvederm growth [18] - International aesthetic sales were $527 million, roughly flat versus the prior year, impacted by declines in China [19] Company Strategy and Development Direction - AbbVie is focused on a diversified growth platform, with expectations of high single-digit compound growth through the end of the decade [8] - The company is actively investing in business development, executing nearly a dozen early-stage deals to drive growth in immunology, oncology, and neuroscience [10] - The pending acquisition of Cerevel is expected to enhance AbbVie's neuroscience pipeline [10][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business, raising guidance for the second time this year, driven by strong performance across the growth platform [11] - The company anticipates robust revenue growth despite headwinds from Medicare Part D redesign and continued Humira erosion [46] - Management noted that the erosion of Humira is expected to be less of a headwind in 2025 compared to 2024 [46] Other Important Information - AbbVie has received FDA approval for Skyrizi in ulcerative colitis, marking its second inflammatory bowel disease indication [22] - The company is advancing its pipeline with several regulatory and clinical milestones, including a Phase 3 study for lutikizumab in hidradenitis suppurativa [24] - AbbVie is committed to maintaining its market leadership in aesthetics, with new product launches planned [20][21] Q&A Session All Questions and Answers Question: Update on 2025 outlook regarding revenue and EPS growth - Management has not provided specific guidance for 2025 but indicated robust revenue growth despite headwinds from Medicare Part D and Humira erosion [44][46] Question: Price versus volume dynamics for Rinvoq and Skyrizi - Strong volume dynamics for Rinvoq and Skyrizi are attributed to consumer investments and market switching from Humira to these new mechanisms [50][51] Question: Commentary on Cerevel acquisition and potential divestments - No divestments are expected as the acquisition is progressing well, with substantial compliance certified to the FTC [60] Question: Business development priorities and balancing near-term earnings with long-term investments - The focus remains on early-stage assets that can drive growth in the next decade, with a clear line of sight to top-tier growth [64] Question: Market dynamics for aesthetics and pricing - Market growth is driven by patient demand and volume, with pricing dynamics expected to improve in the second half of the year [68]