AbbVie(US:ABBV)2025-04-25 21:45Financial Data and Key Metrics Changes - The company reported adjusted earnings per share of $2.46, which is $0.10 above the guidance midpoint [7][45] - Total net revenues exceeded $13.3 billion, reflecting robust growth of 9.8% on an operational basis, excluding a 1.4% unfavorable impact from foreign exchange [7][45] - The adjusted operating margin ratio was 42.3% of sales, including a 1.9% unfavorable impact from acquired IPR&D expense [46] Business Line Data and Key Metrics Changes - Immunology revenues were over $6.2 billion, with Skyrizi and Rinvoq contributing $5.1 billion in combined sales, reflecting growth of more than 65% [14][20] - Oncology revenues reached $1.6 billion, with Imbruvica global sales at $738 million (down 11.9%) and Venclexta global revenues at $665 million (up 12.3%) [20][21] - Aesthetics delivered global sales of $1.1 billion, down 10.2% on an operational basis, with BOTOX Cosmetic revenues at $556 million (down 10.7%) and Juvederm sales at $231 million (down 20%) [23][24] - Neuroscience revenues were approximately $2.3 billion, up 17% on an operational basis, with VRAYLAR global sales at $765 million (up 10.3%) [26][27] Market Data and Key Metrics Changes - The company anticipates total net revenues of approximately $59.7 billion for the year, an increase of $700 million from previous estimates [47] - Skyrizi global revenues are now expected to be $16.5 billion, an increase of $600 million, while Rinvoq global sales are projected at $8.2 billion, an increase of $300 million [48] - US Humira revenues are expected to decrease to $3.5 billion, reflecting higher erosion from biosimilar competition [49] Company Strategy and Development Direction - The company plans to invest over $10 billion in the US over the next decade to support volume growth and expansion into new areas such as obesity [10][54] - The company is focusing on advancing its internal pipeline and pursuing strategic acquisitions to drive growth, including the acquisition of Nimble Therapeutics [11][12] - The company aims for a high single-digit revenue CAGR through 2029, indicating a clear runway for growth [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong performance across therapeutic areas and raised full-year adjusted EPS guidance by $0.10 [9][45] - The company is preparing for potential impacts from sectoral tariffs but believes any related impact would be in line with peers due to its extensive US manufacturing presence [10][53] - Management highlighted the importance of a balanced approach to drug pricing and innovation, emphasizing the need for policies that support the biopharmaceutical industry [91][92] Other Important Information - The company is making significant progress in its pipeline, with several important data readouts and regulatory submissions expected throughout 2025 [44] - The company is also exploring the potential of its amylin analog for obesity treatment, with positive interim results from ongoing studies [42][43] Q&A Session Questions and Answers Question: Can you elaborate on the indications most attributable to the upside for Skyrizi and Rinvoq? - The company raised Skyrizi guidance by $600 million, with $200 million attributed to psoriasis and $400 million to IBD indications. Rinvoq was raised by $300 million across all approved indications [60][61] Question: How is the company thinking about the tail for Humira in light of erosion? - Management noted faster erosion from biosimilars and expects the Humira tail to step down further, with deeper visibility anticipated over the year [66] Question: Can you elaborate on potential mitigation strategies regarding tariffs? - The company plans to manage inventory, secure alternate sources of API, and look for cost efficiencies as potential mitigation strategies [75][76] Question: What are the expectations for the amylin program regarding dosing and efficacy? - The company is exploring higher doses in ongoing studies and anticipates larger sample sizes in future phases, with a focus on tolerability and weight loss efficacy [83][84] Question: How does the company view its manufacturing footprint in relation to US investments? - The company maintains a robust US manufacturing network and plans to invest over $10 billion to expand its production capabilities, ensuring supply assurance [123][126]