FILE PHOTO: A trader works by the post that trades AbbVie on the floor of the New York Stock Exchange March 5, 2015. REUTERS/Brendan McDermid
July 31, 2020
(Reuters) – Drugmaker AbbVie Inc <ABBV.N> on Friday reported a better-than-expected adjusted quarterly profit as sales of its blockbuster drug, Humira, more than offset weak demand for newly acquired aesthetic portfolio.
Share of the company were up 2.5% before the bell.
The company has long relied on its flagship arthritis drug, Humira, and bought Botox maker Allergan for $63 billion in May to reduce its dependence on the treatment ahead of its U.S. patent expiration in 2023.
“The adverse impact from COVID-19 on legacy AbbVie was less than expected… and new patient starts have stabilized and started to recover,” AbbVie Chief Executive Officer Richard Gonzalez said in a statement.
AbbVie said U.S. sales of Humira rose 4.8% to $3.97 billion, while international sales fell about 20% due to competition from cheaper versions.
Combined sales beat analysts’ estimates of $4.62 billion.
The company had cautioned in May of a potential hit during the pandemic to sales from Botox and other aesthetic products, as people avoided non-emergency procedures due to shelter-in-place restrictions imposed to control the pandemic.
Total Botox cosmetic comparable sales plunged 43.1% to $226 million and therapeutic sales fell 22.3% to $297 in the second quarter ended June 30, on a comparable basis.
Like several other drugmakers, AbbVie is also looking to develop a therapy for COVID-19 and collaborating with three organizations, including the Netherlands’ Utrecht University, to develop an antibody that targets the spike protein of the virus.
AbbVie forecast a combined company 2020 adjusted earnings estimate, which includes the results of Allergan from May 8 through Dec. 31, of $10.35 to $10.45 per share, representing annualized net accretion from the Allergan deal of 11%.
Excluding items, AbbVie reported a profit of $2.34 per share, beating estimates of $2.19 per share, according to Refinitiv IBES data.
(Reporting By Manojna Maddipatla and Mrinalika Roy in Bengaluru; Editing by Shinjini Ganguli)
