AbbVie's Humira helps drive Q2 sales as new aesthetics portfolio takes COVID-19 hit

Headline results for the second quarter:

  • Revenue: $10.4 billion (forecasts of $9.9 billion), up 26.3%
  • Loss: $738 million, versus a profit of $741 million in the prior year   

Note: All changes are versus the prior-year period unless otherwise stated

What the company said:

"AbbVie delivered another strong quarterly performance, ahead of our guidance," commented CEO Richard Gonzalez. He noted that "the adverse impact from COVID-19 on legacy AbbVie was less than expected…and new patient starts have stabilised and started to recover."

Meanwhile, the executive indicated that the integration of Allergan, whose $63-billion acquisition was finalised in May, is "going well, with a strong recovery in the aesthetics portfolio and accretion ahead of expectations."

Other results:

·     Immunology: $5.3 billion, up 8.1%

  • Humira: $4.8 billion, up 0.7 %, beating estimates of $4.6 billion, with US sales gaining 4.8% to $4 billion, while international sales declined almost 20% to $863 million due to biosimilar competition
  • Skyrizi: $330 million, versus $48 million in the year-ago period
  • Rinvoq: $149 million

·     Haematologic oncology: $1.6 billion, up 25.5%

  • Imbruvica: $1.3 billion, up 17.2%, with US net revenues of $1.1 billion and international profit sharing of $233 million
  • Venclexta: $303 million, up 79.2%

·     Aesthetics: $481 million, down 47.9% on a "comparable operational" basis based on Allergan's prior-year results

  • Botox cosmetic (acquired as part of Allergan deal): $226 million, down 43.1%, due to COVID-19

·     Neuroscience: $734 million

  • Botox therapeutic (acquired as part of Allergan deal): $297 million, down 22.3%, as a result of the pandemic
  • Vraylar (acquired as part of Allergan deal): $192 million, up 70.4%
  • Ubrelvy (acquired as part of Allergan deal): $22 million

·     Eye care: $417 million

  • Restasis (acquired as part of Allergan deal): $144 million, versus $327 million in the year-ago period

·     Women's health products: $147 million

·     Mavyret: $376 million, down 51.7%

 

Looking ahead:

AbbVie said it expects to see continued recovery in the second half of the year as its total business had already recovered to more than 90% of pre-COVID-19 levels by the end of June. Gonzalez noted that since the end of June, the "vast majority of our aesthetics accounts have reopened in the US, and we're seeing considerable pent-up demand."

In May, AbbVie forecasted that earnings for the full-year would be in the range of $9.61 to $9.71 per share. It is now projecting combined company adjusted earnings of $10.35 to $10.45 per share, representing an 11% annualised net accretion from the Allergan deal. The forecast includes the results of Allergan from May 8, when the buy-out was finalised, through to December 31.

What analysts said:

Commenting on the results, Mizuho analyst Vamil Divan said the aesthetics unit and Botox were holding up better through COVID-19 than the brokerage had expected.

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