AbbVie Inc. ABBV posted impressive results for the second quarter of 2018 with better-than-expected earnings and revenues. Moreover, the company raised its expectations for 2018 bottom line. However, shares fell almost 1.8% in pre-market trading.
Shares of AbbVie have declined 2.9% in a year’s time against the industry’s 1.2% rise.
The biopharmaceutical company reported earnings of $2.00 per share in the second quarter, beating the Zacks Consensus Estimate of $1.98 by 1%. Also, the figure grew 40.8% year over year. Earnings also exceeded the guided range of $1.94 and $1.96 per share.
The company posted revenues of $8.28 billion in the quarter under review, marginally beating the Zacks Consensus Estimate of $8.27 billion. The top line also increased 19.2% year over year. Excluding a 1.8% favorable impact from foreign exchange rate fluctuations, operational revenues rose 17.1%. Revenues growth was higher than the projection of approximately 15% on an operational basis.
Quarter in Detail
Key drug, Humira recorded sales growth of 8.2% on an operational basis with revenues coming in at $5.2 billion. Sales in the United States increased 10% to $3.5 billion, in line with expectations. Humira sales in the ex-U.S. market were up 4.4% on an operational basis and 9.8% on reported basis to $1.67 billion, exceeding the projected figure of $1.6 billion.
Second-quarter net revenues from Imbruvica were $850 million, up 35.6% year over year. U.S. sales of Imbruvica grossed $693 million, up 31.1% from the year-ago figure. AbbVie logged $157 million of international profit sharing with Johnson & Johnson JNJ.
Other products that delivered an impressive performance include Duodopa. It recorded revenue growth of 25.1% on operational and 32.9% on reported basis. Another product called Creon witnessed an increase of 11.4% in revenues on both operational and reported basis.
HCV (chronic hepatitis C virus) products recorded sales of $973 million, up more than 100% year-over-year on the back of strong demand for Mavyret, which was launched in the second half of 2017. The company’s expectation for HCV sales was $950 million.
Adjusted SG&A expenses increased 16.5% to $1.64 billion while R&D expenses escalated 4% to $1.27 billion in the second quarter. Adjusted operating margin was 45.3% of sales.
Other Updates
In July, AbbVie and partner Neurocrine Biosciences announced FDA approval for their pain drug, Orilissa (elagolix), for management of moderate-to-severe pain associated with endometriosis.
In June, the FDA approved label expansion of cancer drug, Venclexta, in combination with Roche’s RHHBY Rituxan (rituximab) for treatment of patients with chronic lymphocytic leukemia or small lymphocytic lymphoma, with or without 17p deletion, in second or later-line setting.
During the quarter, AbbVie entered a license agreement with Mylan N.V. MYL, which will grant non-exclusive license relating to Humira in the United States and other countries, excluding Europe. The agreement restricts Mylan from launching a biosimilar version of the drug till Jul 31, 2023.
2018 Outlook
AbbVie raised its adjusted EPS guidance to the range of $7.76-$7.86 for 2018 from $7.66-$7.76 predicted earlier. The earnings guidance reflects a year-over-year surge of 39.5% at the mid-point. The Zacks Consensus Estimate for current year earnings is pegged at $7.80 per share.
AbbVie Inc. Price, Consensus and EPS Surprise
AbbVie Inc. Price, Consensus and EPS Surprise | AbbVie Inc. Quote
Zacks Rank
AbbVie currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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