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AbbVie, Inc. (ABBV) Bank of America Health Care Conference Call Transcript
ABBVAbbVie(ABBV)2024-05-15 21:50

AbbVie, Inc. (NYSE:ABBV) Conference Call Summary Company Overview - Company: AbbVie, Inc. - Date: May 15, 2024 - Participants: - Robert Michael - CEO - Roopal Thakkar - SVP, Chief Medical Officer, Global Therapeutics - Jeffrey Stewart - COO - Industry: Healthcare, specifically focusing on pharmaceuticals and biotechnology Key Points 1. Growth Platform Performance - The growth platform constitutes 80% of AbbVie's business and is experiencing mid-teens growth, contributing 5.6billioningrowththisyearalone[2][3]−Thecompanyanticipatesrobustgrowthnextyear,projectingaboveindustryaveragegrowth,ultimatelyaimingforhighsingle−digitcompoundgrowththroughoutthedecade[3][5]2.HUMIRAErosionandManagement−HUMIRA′srevenuedeclinedbyapproximately5.6 billion in growth this year alone [2][3] - The company anticipates robust growth next year, projecting above industry average growth, ultimately aiming for high single-digit compound growth throughout the decade [3][5] 2. HUMIRA Erosion and Management - HUMIRA's revenue declined by approximately 6.5 billion last year and is expected to decline to about 4.5billionthisyear[5]−DespiteHUMIRA′serosion,AbbVieisreturningtogrowthoneyearposttheU.S.HUMIRAlossofexclusivity(LOE),afeatnotachievedbyothersintheindustry[5][13]3.SKYRIZIandRINVOQOutlook−SKYRIZIandRINVOQareperformingexceptionallywell,withsignificantmarketsharecaptureandcontinuedmomentumininflammatoryboweldisease(IBD)indications[4][6]−SKYRIZIisexpectedtoreceiveUCapprovalmid−year,whichwillfurtherenhanceitsgrowthtrajectory[8]−RINVOQisprojectedtoexpandintonewindicationsby2026−2028,potentiallyaddingseveralbilliondollarsinpeakrevenue[9]4.OncologyPipelineDevelopments−AbbVieisfocusingonitsADC(antibody−drugconjugate)pipeline,withpromisingprogramsinoncology,includingELAHEREandABBV−400[6][19]−ThecompanyisenteringPhaseIIItrialsforABBV−400incoloncancer,showinggreaterdepthofresponsecomparedtoprevioustreatments[19][20]5.PartDBenefitChanges−TheredesignofthePartDbenefitisexpectedtoimpactgrowth,particularlyinimmunologyandoncology,butAbbViehasalreadyfactoredthisintotheirguidance[11][12]−Thecompanyanticipatesseveralpointsofgrowthdespitethechanges,maintainingarobustgrowthoutlook[12][13]6.AestheticsBusinessRecovery−TheU.S.toxinmarkethasreturnedtogrowth,withmid−single−digitgrowthobservedinthefirstquarter[44]−AbbVieprojectshighsingle−digitgrowthforitsaestheticsbusiness,aimingforover4.5 billion this year [5] - Despite HUMIRA's erosion, AbbVie is returning to growth one year post the U.S. HUMIRA loss of exclusivity (LOE), a feat not achieved by others in the industry [5][13] 3. SKYRIZI and RINVOQ Outlook - SKYRIZI and RINVOQ are performing exceptionally well, with significant market share capture and continued momentum in inflammatory bowel disease (IBD) indications [4][6] - SKYRIZI is expected to receive UC approval mid-year, which will further enhance its growth trajectory [8] - RINVOQ is projected to expand into new indications by 2026-2028, potentially adding several billion dollars in peak revenue [9] 4. Oncology Pipeline Developments - AbbVie is focusing on its ADC (antibody-drug conjugate) pipeline, with promising programs in oncology, including ELAHERE and ABBV-400 [6][19] - The company is entering Phase III trials for ABBV-400 in colon cancer, showing greater depth of response compared to previous treatments [19][20] 5. 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 their guidance [11][12] - The company anticipates several points of growth despite the changes, maintaining a robust growth outlook [12][13] 6. Aesthetics Business Recovery - The U.S. toxin market has returned to growth, with mid-single-digit growth observed in the first quarter [44] - AbbVie projects high single-digit growth for its aesthetics business, aiming for over 9 billion by 2029 [45][48] 7. Business Development Strategy - AbbVie is focusing on smaller-sized opportunities that can drive long-term growth, particularly in immunology and oncology [50][51] - The company is committed to maintaining a net leverage of 2x within 2-3 years while pursuing growth opportunities [52] 8. Competitive Landscape in Neuroscience - AbbVie is optimistic about its position in the neuroscience market, particularly with the development of tavapadon for Parkinson's disease [30][32] - The company believes its product profile offers advantages over competitors, enhancing its market share potential [36] 9. Market Dynamics and Share Performance - AbbVie has maintained its market share in the aesthetics segment despite competition from new entrants like DAXXIFY [44] - The company is seeing strong performance in its Juvederm family, contributing to overall share growth [45] 10. Future Growth Drivers - AbbVie is exploring innovative products, including short-acting toxins and regenerative fillers, to drive growth in the aesthetics market [48] - The company is also looking to expand its ADC capabilities and enhance its oncology portfolio through strategic investments [50][51] Conclusion AbbVie is navigating a transitional phase with the erosion of HUMIRA while focusing on its growth platforms, particularly SKYRIZI and RINVOQ. The company is optimistic about its oncology pipeline and aesthetics business recovery, with a strategic focus on smaller, high-potential opportunities for long-term growth.