AbbVie (NYSE: ABBV) released its Q3 2023 financial report last week, revealing a 6.0% year-on-year (YOY) decline in net revenues for the first nine months of the year, amounting to USD 40.0 billion. The decrease was attributed to underperformance across most business areas, with the exception of neuroscience, which reported a 17.2% YOY increase.
Business Area Performance
Immunology, oncology, aesthetics, eye care, and other key products experienced declines of 8.1%, 10.4%, 1.0%, 11.9%, and 0.4% respectively between Q1 and Q3. The company’s US operations were primarily responsible for the downturn, plunging 8.2% YOY to USD 30.8 billion, while the international market modestly expanded by 1.6% to USD 9.2 billion.
Impact of Humira Sales Decline
The most significant financial blow was a 28.7% YOY collapse in sales of the immunosuppressant Humira (adalimumab), AbbVie’s top-selling drug, which generated USD 19.2 billion over the 9-month period. This decline was due to increased competition from adalimumab biosimilars launched this year.
Performance of Other Blockbusters
Other key products had mixed performances. Skyrizi (risankizumab) and Rinvoq (upadacitinib) saw substantial growth, increasing 50.1% and 56.4% to USD 5.4 billion and USD 2.6 billion respectively. In contrast, Imbruvica (ibrutinib), a tyrosine kinase inhibitor (TKI), plummeted 22.0% to USD 2.7 billion, while Botox (onabotulinumtoxinA), a therapeutic muscle relaxant, grew 12.3% to USD 2.2 billion.
CEO’s Outlook and Recovery Prospects
During the investor conference call, CEO Richard A. González noted that the negative impact on Humira sales was due to lower prices rather than volume. Despite this, he expressed confidence that the company would return to growth in 2025, thanks to promising development programs and a diversified portfolio beyond Humira, particularly Skyrizi, Rinvoq, antipsychotic Vraylar (cariprazine), and Botox.
Conclusion
AbbVie’s Q3 2023 financial report highlights the challenges faced by the company, particularly in the US market and with its top-selling drug Humira. However, the CEO’s optimistic outlook and the strong performance of other key products suggest that AbbVie is well-positioned for a rebound in the coming years.-Fineline Info & Tech
