AbbVie Boosts 2025 Earnings Forecast on Immunology Drug Sales

AbbVie Inc. has announced an upward revision of its earnings forecast for 2025, driven by the strong sales performance of its new immunology drugs, Skyrizi and Rinvoq. The company's first-quarter results surpassed expectations, showcasing robust financial health amidst a challenging market environment.

The company clarified that this adjustment in earnings guidance does not account for any potential changes in trade policies, including the possibility of the U.S. imposing tariffs on the pharmaceutical industry. Despite this, the company's stock price rose by more than 3% in pre-market trading following the release of the financial report.

The pharmaceutical sector has been under pressure recently, with investors concerned about the potential for the Trump administration to impose tariffs on the industry and initiate investigations. This has led to a significant decline in the stock prices of major pharmaceutical companies, including AbbVie, over the past month. Earlier this week, Merck & Co. estimated that it would incur $2 billion in tariff-related costs.

According to the latest annual report, AbbVie operates over 600 production facilities globally, with Ireland playing a crucial role as a key production base for its flagship product, Botox. Financial data indicates that Humira, AbbVie's flagship rheumatoid arthritis drug, saw its global sales drop by half year-over-year to $11.2 billion in the first quarter, falling short of the $13.2 billion expectation. This marks the third consecutive quarter that Humira has failed to meet expectations, as it faces intense competition from more than a dozen low-cost biosimilar drugs.

To counter the decline in Humira sales, AbbVie is aggressively promoting its new drugs, Skyrizi and Rinvoq, with projections that these two drugs will generate over $31 billion in revenue by 2027. In the first quarter, Skyrizi's sales reached $34.3 billion, surpassing the $31.5 billion forecast, while Rinvoq's sales amounted to $17.2 billion, exceeding the $15.9 billion expectation.

The company reported adjusted earnings per share of $2.46 for the first quarter, surpassing the average analyst estimate of $2.38. Looking ahead, AbbVie expects its full-year adjusted earnings per share to range between $12.09 and $12.29, up from the previous forecast of $11.99 to $12.19. This upward revision reflects the company's confidence in the continued strong performance of its new immunology drugs, despite the challenging market conditions.