Key Takeaways:
AbbVie reported Q2 adjusted EPS of $3.65, beating guidance by $0.06, as revenue rose 10.2% to $16.99 billion.
"The performance of SKYRIZI, RINVOQ, and our neuroscience portfolio continues to be very strong," Chief Executive Officer Robert Michael said on the earnings call. "We are raising our full year revenue guidance by $300 million."
Immunology revenue reached $8.8 billion, up 14.6% operationally, with SKYRIZI sales of $5.5 billion (up 24%) and RINVOQ above $2.5 billion (up 23.7%). Neuroscience rose 20% to $3.2 billion, led by Vraylar's 19% gain to nearly $1.1 billion. Oncology fell 2.4% to $1.6 billion as IMBRUVICA declined 29.4% on Inflation Reduction Act pricing and competitive pressure, while HUMIRA dropped 36.1% to $706 million on biosimilar competition. Aesthetics slipped 0.9% to $1.3 billion, with Juvederm down 6.6% to $245 million.
The company raised full-year revenue guidance to approximately $67.6 billion but trimmed adjusted EPS guidance to $13.87-$14.07, reflecting $0.14 of dilution from the planned $10.9 billion Apogee Therapeutics acquisition, expected to close in the third quarter. The deal adds long-acting biologics for atopic dermatitis and respiratory conditions to AbbVie's immunology pipeline, which faces new oral competition in psoriasis from ICO. Management also lifted SKYRIZI's full-year outlook by $100 million to $21.7 billion and forecast third-quarter revenue of about $17.2 billion with adjusted EPS of $3.84-$3.88.
Shares fell 2.5% to $245.10 on July 31 as investors weighed the EPS cut against the revenue raise, and slipped further in the days after. The stock trades at a trailing P/E near 123 times, with a market cap of $443.4 billion. Cantor Fitzgerald raised its price target to $285 on Aug. 3, keeping an Overweight rating, while the 31-analyst consensus sits at Moderate Buy with a mean target of $265.79.
Pipeline milestones during the quarter included European approvals for QLIPTA in acute migraine, RINVOQ in vitiligo and alopecia areata, and the fast-acting aesthetic toxin Bowie. Management projects combined peak sales above $5 billion for its oral CGRP migraine portfolio and more than $5 billion for its Parkinson's franchise, which includes Vialev, tevapadon and Duopa.
The guidance raise signals management expects SKYRIZI and RINVOQ momentum to carry into 2027, with SKYRIZI's subcutaneous induction approval for Crohn's disease expected this fall. Investors will watch the third-quarter report for the Apogee close and the launch of Parkinson's drug tevapadon, with an FDA decision expected in the third quarter.
This article is for informational purposes only and does not constitute investment advice.
