AbbVie's Q2 2025 Earnings Call: Unpacking Contradictions in Skyrizi Growth, Inventory Strategies, and Market Dynamics

Skyrizi's growth drivers, inventory management and tariff impact, impact of STELARA biosimilar on Skyri



Record Revenue and Earnings Growth:
- AbbVie reported adjusted earnings per share of $2.97, which is $0.11 above their guidance midpoint.
- Total net revenues were $15.4 billion, exceeding expectations by more than $400 million.
- The growth was driven by strong performance in ex-HUMIRA platforms, particularly Skyrizi and Rinvoq, as well as robust growth in neuroscience.

Immunology Performance:
- Skyrizi global sales reached $4.4 billion, up 61.8% on an operational basis, capturing significant market share in psoriatic disease.
- Rinvoq global sales were $2 billion, up 41.2%, with significant uptake across all indications, including IBD and GCA.
- This growth is attributed to the products' compelling efficacy, safety, and dosing profiles, alongside strong head-to-head clinical trial results.

Oncology Segment Dynamics:
- Oncology revenues were nearly $1.7 billion, with IMBRUVICA global sales at $754 million, down 9.5%, and Venclexta revenues at $691 million, up 8.3%.
- Growth in Venclexta is due to strong demand in CLL with combination use, while IMBRUVICA faces competitive dynamics in CLL.
- The approval of EMRELIS in lung cancer bolsters AbbVie's presence in solid tumors.

Aesthetics Market Challenges:
- Aesthetics revenues were nearly $1.3 billion, down 8% on an operational basis, impacted by economic challenges and lower consumer sentiment.
- The slowdown in consumer spending and economic uncertainty have affected consumer-centric categories like aesthetics.
- Modest price increases and strategic actions, such as enhanced patient activation, are being implemented to support market recovery.