AbbVie has raised its full-year outlook as the biopharmaceutical company reported better-than-expected third-quarter results, driven by strong sales of its immunology drugs, Skyrizi and Rinvoq. The anticipated adjusted per-share earnings for 2024 now range between $10.90 and $10.94, reflecting a $0.64 hit related to acquired in-process research and development and milestone expenses incurred through the third quarter.
Previously, the company had projected adjusted EPS in the range of $10.67 to $10.87, while analysts on Capital IQ had an average expectation of $10.88. The revenue projection for the current year has been adjusted to approximately $56 billion, an increase of $500 million, as stated by Chief Financial Officer Scott Reents during an earnings call.
This figure slightly surpasses market expectations, which are set at $55.97 billion. "Based upon the momentum of AbbVie's business and our confidence in the long-term growth outlook, we are once again raising our full-year guidance," said Chief Executive Robert Michael in a statement. Following this announcement, the company's stock increased by 1.3% during Wednesday trading. In the September quarter, AbbVie's adjusted EPS rose to $3, compared to $2.95 in the same quarter last year, exceeding street estimates of $2.92.
This result factored in a negative impact of $0.04 per share due to the acquired in-process research and development and milestone costs. Revenue also rose, climbing 3.8% to $14.46 billion, surpassing the analysts' estimate of $14.28 billion. The immunology portfolio's global sales climbed 3.9% to $7.05 billion.
Significant increases in sales for Skyrizi and Rinvoq, which rose by 51% and 45% respectively, helped to offset a 37% decline in Humira sales. "While Humira's share erosion to biosimilars in the US aligns with our expectations, we are now observing a greater shift of Humira molecule volume to other novel mechanisms than previously anticipated," said Chief Commercial Officer Jeffrey Stewart.
"This trend may negatively affect Humira sales, but it is positively benefiting Skyrizi and Rinvoq, creating a promising outlook for our immunology portfolio both now and in the future." In the oncology segment, revenue experienced a remarkable 12% increase to $1.69 billion, powered by a 15% rise in Venclexta sales.
Meanwhile, the neuroscience division reported a revenue increase of 16% to $2.36 billion, while the aesthetics portfolio saw a slight decrease of 0.1% to $1.24 billion. Eye care sales, however, fell by 14% to $525 million. Looking ahead to the fourth quarter, the company anticipates adjusted EPS ranging from $2.94 to $2.98, with revenue expected to approach $14.8 billion, according to Reents.
Market analysts currently predict normalized EPS of $2.97 and revenue of $14.68 billion. Price: 192.19, Change: +2.74, Percent Change: +1.45.